Small firms buying from abroad still lose the most to currency fees

More than half of US small businesses now buy from overseas suppliers, and the biggest measured cost of paying them is still the currency conversion. A PYMNTS Intelligence report found that 57% of surveyed small and mid-sized businesses bought production inputs abroad in 2025. Two product announcements this month aim to trim some of that cost. Neither came with prices.

What the survey found

The report, produced with Mastercard, found overseas buying at 42% of businesses with annual revenue below $150,000. It reached 73% of firms with $1 million to $10 million in revenue. Among firms that buy abroad, the top wish was faster processing and settlement, meaning money arriving sooner.

• Faster processing and settlement: 43%
• Lower fees or better exchange rates: 37%
• Security and fraud protection: 32%
• Cost transparency and customer support: 27% each

Priorities shifted by size. Medium-sized firms put fees and exchange rates next after speed. The smallest firms mostly wanted to know what a payment would cost before sending it.

Where the money goes

The Financial Stability Board's 2025 progress report found that foreign exchange remained the largest part of measured retail cross-border payment costs. Average global costs showed little change from 2024, or since 2023. Its retail category includes business payments below $100,000, with comparisons based on $20,000 transfers. Fees on the receiving side averaged 0.1% to 1.3% of the amount sent.

Many buyers pay in dollars. The PYMNTS report found 63% of internationally active firms mostly paid suppliers in dollars, while 4% mainly used suppliers' local currencies. Dollar payments leave suppliers to handle the conversion, and suppliers typically build those losses into their prices.

What the new products offer

Stripe and Plasma said Oct. 15 that they are partnering on multicurrency stablecoin cards. The goal is to avoid unnecessary conversions. A cardholder with euros could spend euros directly, without converting through dollars first. Thredd and Finsei said Oct. 20 that they are teaming up on debit cards inside Finsei's accounts, payments and currency management service. Thredd supplies processing.

Neither announcement gave comparative customer pricing or measured savings across the full payment chain. A Bank for International Settlements working paper, released Oct. 19, also warned that moving between stablecoins and national currencies still involves exchanges and other middlemen whose charges can raise total costs. Recipients may also wait for conversion and bank processing.

What to do

If you pay overseas suppliers, get the full cost in writing before you send money or switch providers. Useful questions include:

• What exchange rate will be used, and how does it compare with the market rate?
• Are there fees from banks in between or from the receiving bank?
• How long until the supplier has the money?