47% of mid-market firms lack payment strategy

Nearly half of mid-market businesses have no formal strategy for deciding how suppliers should be paid, even though electronic payments already account for most transactions at many organisations, according to research from AvidXchange. The study examined whether modernised payment processes were informing wider financial decisions.

The 2026 B2B Payments Strategy survey, based on responses from more than 500 finance decision-makers, found that 47% lacked a formal payment mix strategy covering cost, rebate opportunities and supplier preferences. By contrast, 63% said they mostly or exclusively used electronic payments.

Digital adoption therefore appears to have moved faster than the policies governing it. An organisation may have replaced cheques and manual processing without establishing consistent rules for selecting payment methods, timing transactions or balancing payment costs against rebates and suppliers’ needs.

Real-time information was one of the clearest dividing lines. Among businesses with a formal payment strategy, 67% said they had real-time visibility into payments, twice the 33% recorded among those without one. This 34-percentage-point gap suggests that a defined approach tends to sit alongside better access to operational data.

Almost a quarter of respondents, 23%, said improved visibility into cash flow and payment timing would have the greatest effect on their accounts payable or payment strategy during the next 12 months. Knowing when funds will leave the business can support liquidity planning, cash forecasting and decisions about when to hold or deploy money.

Supplier relationships also featured prominently. Some 46% of finance leaders described the supplier payment experience as having a very significant effect on business relationships. Payment speed, method and reliability therefore form part of supplier management, particularly where businesses depend on critical partners or negotiate terms to protect working capital.

Half of those surveyed said they used their accounts payable or payment automation provider significantly to inform broader finance decisions, including payment mix optimisation, rebate capture and cash flow visibility. Respondents with formal strategies were twice as likely to treat their provider as a key input into finance strategy.

Businesses with written payment policies appear to make greater use of transaction data beyond processing. Better visibility can help finance teams understand outgoing cash requirements, compare payment methods and spot where timing or rebates could alter the economics of a transaction.

Modern payment execution and strategic payment management are progressing at different speeds. Most respondents had already moved towards electronic methods, yet almost half had not formalised how those methods should be chosen. That leaves individual payment choices open to inconsistency.

Without a formal framework, cost, timing, rebates and supplier preferences may still be settled transaction by transaction, even when the payment itself is electronic. The technology may have changed, while the decision-making around it remains ad hoc across much of the mid-market.

 

Rate divergence and oil shock reshape Asia Pacific finance

Companies across Asia Pacific are adjusting borrowing, hedging and investment plans as central banks pull in different directions and the Middle East conflict keeps energy prices elevated, according to market analysis from J.P. Morgan. Dealmaking and AI investment are continuing alongside those pressures, although the sources of capital and transaction activity are changing.

Monetary policy is splitting across the region. Japan, Korea, Indonesia and the Philippines are raising rates, while China could cut. Oliver Brinkmann, co-head of global corporate banking for Asia Pacific at J.P. Morgan, said: “After years of a very low rate environment, corporates expected the recent rise to be temporary in nature. Instead, we find ourselves in a higher-for-longer rate environment.” He said larger companies with sophisticated treasury operations were better placed to absorb the swings, leaving smaller businesses with greater margin pressure.

Japan and Korea have also intervened to steady their currencies. J.P. Morgan said Japan had spent around $100 billion in coordination with the US to support the yen. Rahul Deora, head of corporate FX and rates for Asia Pacific, said yen hedging costs had reached four-year lows: “We’re currently around 2.8%, and could head toward 2.5%.”

Energy costs present the more immediate cash challenge. J.P. Morgan described the disruption to crude markets as one of the most severe supply shocks on record, with the pressure spreading into gasoline, diesel, liquefied petroleum gas, jet fuel and petrochemicals. Raman Walia, its head of commodities sales for Asia Pacific, warned: “Don’t mistake the price moves for stability. The real impact is being felt on the product side.” Airlines, refiners and industrial companies face disruption to cash flow, tighter margins and greater counterparty credit risk.

Dealmaking presents a different picture. Global M&A volumes grew 45% in the first half of 2026, while Asia Pacific volumes fell by roughly 10%. Activity beneath that headline remained substantial: the region recorded 114 shareholder activist campaigns, equal to 45% of the global total. Japan accounted for much of the activity, although campaigns were spreading into Korea and Australia. Private equity-backed deals generated about 25% of regional M&A volumes.

Technology is creating another source of transactions and capital demand. Global AI-related capital expenditure is projected to approach $870 billion by the end of 2026, a 77% year-on-year increase. Data centre spending is expected to total about $5.5trn over the five years to 2030, with semiconductor manufacturers, cloud infrastructure providers and high-growth start-ups across Asia Pacific among the potential beneficiaries. Venture funding is also moving beyond pure software towards robotics, automation, edge computing and quantum computing.

Higher funding costs, cheaper yen hedging and expensive energy will affect companies differently according to their location and financial capacity. Large treasury operations can reposition funding and hedges as conditions change. Smaller companies have less protection against rate swings, higher input costs and delayed returns from investment, making liquidity visibility and margin discipline more pressing.

 

Tokenised money gains ground as treasury volatility rises

Almost nine in ten large businesses are deploying or piloting tokenised money as treasury teams seek faster settlement and greater control over liquidity, a DBS survey has found. ‘The Great Rewiring: Money in a New Order’ surveyed 422 CFOs, finance heads and senior treasury executives at organisations with annual revenue above $500m across 11 markets.

Tokenised money use reached 88%, although the figure combines live deployments with pilot projects. Most respondents expected benefits within two years. Improved auditability and traceability led at 72%, followed by real-time cross-border payments at 71%, stronger internal controls and governance at 66%, and better treasury liquidity management at 65%. Faster settlement can reduce the time cash remains unavailable between accounts, while traceable transactions provide a clearer record of how funds were moved.

Stablecoins were the most widely adopted tokenised instrument, used by 63% of companies. Tokenised deposits followed at 53%, narrowly ahead of tokenised money market funds at 52%. Pilots were therefore spread across several forms of digital money, with no single model dominating corporate experimentation.

Business operations were changing at the same time. More than three-quarters had adapted their activities and expanded into new markets in response to supply chain reconfiguration, with Southeast Asia the leading destination. A similar proportion reported higher FX and energy price volatility and less predictable settlement outcomes during the previous 12 months. More than three-quarters were also rewriting treasury and finance policies to strengthen resilience.

Currency diversification has accompanied that expansion. Some 78% had built exposure to multiple settlement currencies to support a wider range of trading corridors, while just 2% were not considering any other currencies. A broader currency mix gives companies more settlement options but also creates extra balances, funding requirements and FX exposures to monitor.

Finance teams are also moving AI into routine treasury work. Around three in four respondents had already seen, or expected within two years, improvements in cash and liquidity forecasting, payment investigations, post-settlement issue resolution, reconciliation and exception detection. These uses concentrate on decisions and processes that depend on timely transaction data.

Regulatory and compliance uncertainty, data security, operational risk, limited expertise and integration complexity remained barriers to implementation. Some 64% wanted banks to provide a single point of connection to the tokenised money ecosystem, while 63% sought help with pilots, proofs of concept and integration. The same proportion wanted access to bank-enabled technology platforms for scaling AI.

Lim Soon Chong, group head of global transaction services at DBS, said parallel settlement networks could introduce new compliance demands: “However, many emerging settlement networks are developing in parallel. For companies, fragmentation may add complexities and compliance obligations.” The survey suggests integration and governance will determine how quickly pilots become ordinary treasury infrastructure.

 

Stablecoin FX costs shift with timing and direction

Stablecoin foreign exchange costs vary widely with payment direction, execution time and liquidity provider, complicating the case for using digital currencies as a cheaper route for cross-border payments, according to Orbital research. The study analysed 27,057 indicative USDT quotes from 20 liquidity providers across 52 currencies, using a $100,000 transaction.

For businesses already holding USDT, converting it into local currency for outgoing payments cost 10 to 21 basis points more than collecting funds into USDT in 15 of the 17 currencies analysed. That added between $100 and $210 to a $100,000 payment.

Brazil and Argentina reversed the pattern. In Brazil, dollar-to-real conversion was priced seven basis points below the fiat mid-market rate, while converting reais into dollars was 83 basis points above it. The 90-basis-point gap shows how collection and payout economics can differ within the same currency corridor.

Against two leading fintechs, stablecoin routes were cheaper in 30 of 32 comparisons, usually by 10 to 40 basis points. The advantage largely disappeared against institutional FX: stablecoins were cheaper in only six of 22 comparisons, with the other 16 priced within five basis points of the institutional desk. For companies already accessing institutional rates, the potential saving was therefore small.

Weekend execution introduced another cost. Mexican peso conversion quotes reached 2.6 times weekday levels, while Japanese yen costs rose 2.3-fold. Canadian dollar and Norwegian krone quotes more than doubled. One traditional fintech also increased its fee from 0.48% on weekdays to 1.48% at weekends.

Provider selection produced the widest spread. For one Southeast Asian currency, round-trip quotes ranged from 16 to 322 basis points, a 20-fold difference. Other currencies with thinner competition cost 138 to 286 basis points. Best-to-worst quote gaps reached about 44 basis points for Brazilian reais and 19 for Mexican pesos.

USDT’s dollar value created a separate exposure. Its median price over six months was $0.99922, around 0.08% below parity. A treasury recording $1 million of USDT at one dollar per token could receive about $800 less when converting it back into dollars, before transaction charges.

Orbital collected the quotes between 28 April and 6 October 2026, with comparative data for fintech and institutional pricing covering shorter periods. The results measure quoted prices, not completed trades, and exclude blockchain fees, slippage and other execution effects. Because the study examined USDT, its valuation findings do not automatically apply to other stablecoins.

 

Energy and bond yields threaten 2027 global growth

Goldman Sachs Research expects global economic growth of 2.7% in both 2026 and 2027, with lower energy prices forecast to offset fading support from fiscal policy and artificial intelligence investment. Jan Hatzius, chief economist at Goldman Sachs Research, said the broad trajectory was likely to remain steady, although the outlook had weakened: “But the balance of risks is on the downside.”

Energy presents the most immediate threat. Prices have risen sharply on fears of renewed escalation in the Middle East, which would squeeze household budgets and energy-importing economies. Companies that rely heavily on fuel, freight or imported energy would also face higher operating costs.

Higher bond yields could create a more persistent drag. Large-scale government deficits, AI-linked borrowing and central bank rate increases have pushed up longer-term rates. If sustained, the increase could subtract a cumulative 0.6% from global GDP through weaker housing, consumer durables and business investment.

Bond markets may be pricing too much monetary tightening, according to Hatzius. “Our strongest global view is that central banks will deliver fewer hikes than currently priced,” he said. Goldman Sachs therefore expects yields to retreat.

AI investment is still growing rapidly, but its contribution to economic growth is expected to weaken. “Although AI investment is still rising rapidly, we expect the increase as a share of GDP to slow over the next year,” Hatzius said. The slowdown could weigh on capital spending and consumption after AI-related gains added an estimated 0.25% of GDP to consumer spending over the past year.

Longer-term, Goldman Sachs still expects returns from the technology. Hatzius added: “Our own base case remains that AI investment will ultimately pay off in terms of higher productivity and economywide profits.” The nearer-term risk is a lull in investment and consumption before those productivity gains emerge.

 

Regulation creates twice the tax friction in Latin America

Regulatory requirements create more than twice as much operational friction as accounting and tax compliance for businesses expanding across Latin America, according to research from Vistra and Euromonitor International. The regulatory and entity management score averaged 61 out of 100 across eight regional markets, compared with 26 for accounting and tax.

Seven of the eight markets scored above 50 for regulatory friction. Chile was the sole exception at 30. Elsewhere, uncertain rules, complex administration and inconsistent requirements persisted despite advances in electronic invoicing and digital tax reporting.

Mexico displayed the sharpest split. Its regulatory and entity management score reached 69.3, the third-highest in the study, while its accounting and tax score of 4.4 was the lowest. The results suggest digitised tax processes do not necessarily remove the administrative burden of establishing and running an entity.

Chile combined the region’s highest investment attractiveness score, at 56.8, with overall operational friction of 23.5. Ecuador recorded the highest overall friction across the ten markets at 59.3. Brazil’s overall score was 39.6, with tax complexity and continuing reform among its main pressures.

North America produced a different cost profile. The US recorded the lowest regulatory and entity management friction score, at 7.2, but its HR and payroll score of 48.0 was the second-highest. Vistra attributed that result to labour costs and immigration requirements.

Forthcoming reforms will alter several of the calculations. Brazil’s move to a dual VAT system will affect invoicing, reporting and tax compliance, while Mexico’s working week is due to fall gradually from 48 to 40 hours. Colombia is changing labour rules, and Argentina is modernising employment regulation while easing exchange controls. Raimundo Diaz, president of Vistra Global Solutions Americas, said: “With Brazil overhauling its VAT system and Mexico reducing its working week, the next few years will bring real change across the region.”

Implementation will reach well beyond compliance teams. Brazil’s transition will require changes to invoicing and reporting systems, while shorter working hours in Mexico will affect staffing plans and payroll. Argentina’s easing of exchange controls could also change how businesses fund local operations and manage currency exposure.

 

Tech Mahindra and Mastercard embed payments into ERPs

Tech Mahindra and Mastercard have formed a partnership to embed virtual card and other payment capabilities into enterprise resource planning and procurement platforms. The companies are targeting businesses that want to automate B2B payments without replacing their existing finance and procurement systems.

Mastercard’s payment capabilities will be connected to ERP, procure-to-pay and source-to-pay environments through Tech Mahindra’s integration work. Payments would sit inside the workflows used to approve purchases, manage suppliers and reconcile transactions, reducing the need to move between procurement software and separate payment portals.

Planned functions include API-led payment initiation, real-time reconciliation, virtual card issuance, fraud management and configurable payment controls. The arrangement is also intended to give finance and treasury teams more current information on outgoing payments and make it easier to apply spending rules before funds leave the business, supporting working capital decisions.

Existing B2B payment processes can require manual approvals, supplier onboarding and data entry across several systems. Connecting payment execution to the underlying purchase and invoice records could reduce rekeying and allow reconciliation data to return directly to the ERP or procurement platform.

Virtual cards are expected to provide a controlled payment option for supplier transactions. Individual credentials and transaction-level limits can restrict where and how funds are used, while the resulting data can support reconciliation, spend analysis and oversight of supplier payments.

Agentic AI workflows are also included in the partnership’s planned scope. Tech Mahindra said these tools could support payment and procurement tasks within existing systems. This could shorten processing cycles for routine supplier payments and direct staff towards exceptions.

Connecting payments at the software layer also links the initiative to broader ERP and procurement modernisation projects. Businesses could add payment functionality when updating those workflows, keeping payment data and approvals within the same operating environment. The model is intended to cover finance, treasury, accounts payable, procurement and supplier management teams.

 

CrediPort partners test three-corner digital letter of credit

CrediPort, Capital4Trade and WaveBL have completed a proof of concept for a fully digital three-corner letter of credit. The companies say the model is the first to connect a buyer, seller and single financier digitally from creation of the credit through document examination and discrepancy handling.

The structure replaces the usual handoff between several banks with one financing relationship and a shared digital workflow. CrediPort manages the electronic letter of credit and examines documents, while WaveBL provides the electronic bill of lading and secure document channel. Payment conditions, shipping evidence and exception decisions remain in the same digital record throughout the process for each participant.

Documents from a shipment between Spain and the US were used in the demonstration. Capital4Trade contributed the commercial relationship, financing perspective and trade documents. CrediPort then generated the credit terms from a pro forma invoice, with WaveBL supplying the digital shipping document.

Across three document submissions, the system carried out two compliance examinations. One involved a second review after a commercial invoice was corrected. Discrepancies were identified, recorded and resolved within hours on 17 September, creating a traceable record of the documents, findings and decisions.

For buyers, the proposed workflow provides visibility over exceptions and decisions. Sellers receive quicker feedback on submitted documents and could seek finance against the buyer’s credit. Financiers can assess agreed conditions against verified shipment evidence without repeating manual checks across separate systems.

As a proof of concept, the exercise tests how digital credit management, electronic original documents and structured compliance reviews can operate together. The partners intend the model for banks and non-bank financiers seeking to offer documentary credit with fewer manual handoffs and clearer records of exceptions.

 

MUFG launches virtual account management in the Americas

MUFG has launched a virtual account management service in the Americas, giving corporate clients a way to organise multiple payment and cash flows beneath a single physical bank account. The bank is positioning the service as part of its wider liquidity offering.

Virtual accounts can be created and linked to the underlying physical account, allowing treasury teams to retain separate identifiers for different flows without maintaining an equivalent number of bank accounts. Cash remains concentrated in the main account while activity can be viewed through the linked virtual structure.

Reducing the number of physical accounts can simplify account administration and give finance teams a more centralised view of liquidity. MUFG said the reporting attached to the service could also support reconciliation, improve transparency and reduce manual work across treasury operations.

During a pilot programme, MUFG used the service to establish virtual accounts, process US dollar transactions and test its reporting functions. The commercial launch follows that trial and extends the bank’s existing cash management and liquidity services.

Clients can use the structure to manage incoming and outgoing transactions through one physical account while preserving a more detailed reporting view. That arrangement may be useful where account proliferation has made cash visibility and reconciliation more difficult.

Beyond the Americas launch, MUFG Bank is considering a wider international rollout. A broader rollout would extend the same liquidity structure to clients operating in other markets, although any expansion remains at the exploratory stage. For now, the announced service applies to the Americas.