Currency Matching Innovations Critical as Tariffs Shake Up Cross-Border B2B Trade

Tariffs have thrown the global trade order into a new era of fragmentation.

On Friday (May 2), Temu stopped shipping products from China directly to the U.S., while just days earlier it was reported that Amazon is looking for steep supplier discounts to offset the impact of Trump’s tariffs.

But in a world where international trade is complicated by fluctuating policies, rising costs and unpredictable currency values, one thing is becoming surprisingly clear: simplicity sells. 

Sophisticated solutions for cross-border trade can help firms mitigate risk, enhance liquidity and maintain competitiveness. More specifically, simplicity in payments is fast becoming a competitive differentiator in global B2B eCommerce, and it’s an area where currency matching is beginning to shine.

Typically, buyers in one country pay suppliers in another using dominant currencies like the U.S. dollar or the euro, regardless of local currency preferences. This introduces not only foreign exchange risk for suppliers, but also higher processing costs, delays in settlements, and reconciliation headaches.

Currency matching, the strategy of settling payments in the supplier’s preferred local currency, can help to remove the friction of foreign exchange fees, rate uncertainty, and opaque pricing.

With trade policies in flux and costs climbing, this detail is becoming strategic, particularly as advances in artificial intelligence (AI) and automation, as well as a shift toward virtual cards, are helping to build a more streamlined, simplified and cost effective cross-border B2B ecosystem.

Read also: Trump’s Global Tariffs Position CFOs as New Supply Chain Architects

Currency volatility, a perennial concern in international trade, has become more pronounced in the current geopolitical climate. This shift has forced multinational corporations and small to medium-sized businesses (SMBs) to reassess their sourcing strategies, often leading to a reevaluation of supplier networks and an increase in transactions across a broader array of markets and currencies.

Nearly 1 in 5 SMBs are pessimistic about their odds of survival over the next five years, according to the PYMNTS Intelligence report “Brewing Storm: Why 1 in 5 Smaller Businesses Without Financing Fear They May Not Survive Tariffs.”

As businesses diversify their trade relationships to circumvent tariff barriers, they can encounter a corresponding rise in foreign exchange (FX) exposure and settlement challenges.

Currency matching flips this dynamic. The practice aligns receivables and payables in the same currency to reduce the need for FX conversions. When done effectively, it allows companies to naturally hedge their currency exposures by matching inflows and outflows, avoiding the need to enter the FX market. More importantly, it can simplify the relationship between buyers and suppliers.

“When you have volatility in the values of currencies it adds to what is ‘necessary’ to carry out successful cross-border payments and an overall payment strategy,” Rob Seidman, head of U.S. Bank’s Avvance, told PYMNTS. “The holy grail is a frictionless experience.”

Traditionally, this has been a manual and time-consuming process, especially for firms with fragmented ERP systems and decentralized treasury operations. However, recent advances in AI, machine learning and real-time data analytics are changing that by powering currency matching platforms that can identify and execute optimal matching strategies across multiple entities and geographies.

There are also advances in blockchain-based solutions, such as stablecoins, for firms to consider when it comes to optimizing their cross-border payment processes. These transactions take place on different blockchains and can help to mitigate, or even avoid entirely, traditional FX risk. On Monday (May 5), a Digital Asset Market Structure Discussion Draft was introduced into Congress, representing a bill which could establish a productive regulatory framework for payment stablecoins and other digital asset payment mechanisms.

Read also: What Pinball Tells Us About Spending in the Post-Tariff World

Transparency is in short supply. That can make it more valuable than ever for businesses transacting across borders.

Currency matching is no longer a back-office function. It’s becoming a lever for CFOs to drive value by embracing tools that not only automate currency matching but also provide visibility into global cash positions, forecasted exposures, and risk-adjusted strategies.

And as B2B transactions become more digitized, particularly on eCommerce platforms, this kind of transparency isn’t just nice to have — it’s essential. Business buyers now expect the same smooth, intuitive experience they get as consumers. That includes visibility into pricing, fees and timelines.

Automation, meanwhile, takes the grunt work out of managing cross-border payments. Reconciliation, auditing, tax documentation and compliance checks are handled by algorithms. This reduces the administrative load on finance teams and lowers the barrier to global trade for smaller businesses.

Another development reshaping B2B payments is the rise of virtual cards — secure, one-time-use payment methods that offer greater control and lower fraud risk. When integrated with currency matching, virtual cards enable instant, compliant and traceable payments across borders.

While virtual cards have long been used in travel and expense management, they’re now entering B2B eCommerce with force. Companies can issue cards in a supplier’s local currency, tie them to specific invoices, and set spending rules — all from a centralized dashboard.

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