5 Popular Payment Methods for International Trade (2025 Edition)
Are you looking for ways to handle international payment methods more efficiently in 2025? If you’re a business owner, freelancer, or part of a finance team, you know that using the right approach for cross-border transactions is vital. Global trade is on the rise, and the methods we rely on are changing quickly.
Already, real-time payments and digital wallets are seeing tremendous growth, which signals a new era for international trade. For more insights into cross-border fees that can complicate these transactions, check out our Cheap Ways to Send Money Internationally (Edition).
Below, you’ll find five popular payment methods for international trade in 2025. We’ll look at their pros, potential drawbacks, and how each method might be the right (or wrong) fit for your unique situation. After that, we’ll explore key factors you should think about before selecting a payment method and discuss how Mural Pay fits into the international trade environment.
1. Wire Transfers
Wire transfers have been a reliable mainstay for international trade for decades. They work through established banking networks like SWIFT or Fedwire, letting businesses send high-value payments anywhere in the world.
Why Use Wire Transfers?
Reliability: Wire transfers are known for their established protocols and security layers.
Compatibility with Large Sums: They’re often favored for transactions reaching hundreds of thousands—or millions—of dollars.
Security Checks: Banks typically run robust checks against fraud.
Potential Downsides
Fees: On average, international wire transfers can cost from 3% to over 6% of the transaction amount, which adds up quickly for high-value payments.
Slower Processing: While some banks now offer same-day or next-day wiring, it can still take a few business days for funds to clear, especially if several intermediary banks are involved.
Limited Transparency: Tracking the status can be confusing because funds often pass through multiple institutions.
Recent Developments
Banks are modernizing their wire transfer processes. According to a PwC report, next-generation digital tools may cut transfer times to a matter of hours, reducing the need for multiple intermediaries. Even so, wire transfers still won’t typically be instantaneous, so plan on at least a short waiting period for funds to arrive.
2. Letters of Credit
A Letter of Credit (LC) is useful when you’re dealing with a new partner or making particularly large purchases. In essence, a bank guarantees the payment to a seller if they meet certain conditions spelled out in sales documents.
Why Use Letters of Credit?
Risk Mitigation: LCs protect both buyer and seller from common pitfalls (like non-delivery or late payments).
Established Processes: Both parties can rely on bank oversight, which helps maintain trust.
Global Acceptance: Letters of Credit are recognized worldwide, making them especially appealing in machine parts exports, heavy machinery, or commodity trading.
Potential Downsides
Complex Paperwork: There’s often a lengthy list of steps to finalize everything. Mistakes in documentation can trigger re-submissions, driving up costs.
High Bank Fees: The security and formality of LCs often come with additional service charges.
Time-Consuming: Preparing, verifying, and finalizing documents isn’t quick. Delays can occur if either party’s documentation is incomplete or inaccurate.
Future Outlook
Banks and fintechs continue to adopt digital LCs. Some are using blockchain-based ledgers to speed up validation, potentially shrinking typical LC processing times from days down to less than 24 hours. By 2025, experts predict this technology will be more mainstream in global trade.
3. Open Account
Open account terms let exporters ship goods before the buyer pays. Often seen between partners with a history of trust, this method can significantly improve cash flow for buyers while boosting sales for exporters who want to extend credit terms.
Benefits of Open Account
Buyer-Friendly: Payments are typically due 30, 60, or 90 days after shipment, easing immediate financial pressure.
Encourages Repeat Business: Sellers willing to extend credit on an open account often build strong client relationships.
Lower Administrative Hassle: Unlike LCs or Documentary Collections, open account trading requires fewer documents.
Things to Watch Out For
Risk for Sellers: Sellers carry the bulk of risk, as goods are shipped without immediate payment. Thorough credit checks are a must.
Volatile Exchange Rates: When payment is due later, currency fluctuations can reduce your expected earnings if not hedged properly.
Where It’s Headed
Open account terms continue to spread as supply chain finance evolves. New credit scoring tools and artificial intelligence solutions help sellers gauge buyer risk faster, making open account strategies more attractive—even in new partnerships.
4. Digital Wallets
Digital wallets have recently gained traction for B2B and B2C transactions alike, thanks to their convenience and speed. A digital wallet might integrate multiple currencies, store payment details, and provide quick checkout features.
Why They’re So Popular
Instant Transactions: Many digital wallets settle payments immediately or within minutes.
Reduced Transaction Fees: Some digital wallet providers offer lower fees for cross-border transfers compared to traditional banks.
Built-In Security Features: Encryption, two-factor authentication, and biometric ID can make digital wallets tougher targets for fraud.
Drawbacks
Regulatory Differences: Not every wallet has the same level of licensing or compliance in each country.
Daily/Monthly Limits: Certain providers cap how much you can send or withdraw within a given timeframe.
Variable Acceptance Rates: While popular for e-commerce, not all large businesses accept payments via digital wallets—yet.
Looking Ahead
As of 2025, real-time payment networks increasingly link to digital wallets, and more providers allow multi-currency balances. This shift paves the way for near-instant settlements across borders. Some companies are coupling digital wallets with embedded financing, offering lines of credit right inside the wallet interface.
5. Blockchain-Based Solutions (Including Stablecoins)
Blockchain technology—especially stablecoins—offers an alternative to traditional finance by cutting out multiple intermediaries. Stablecoins, for instance, are pegged to a steady asset (like USD) and can be sent globally with fewer cross-border hurdles.
Reasons to Consider Blockchain-Based Methods
Fast Settlement: Transactions can finalize in minutes, regardless of banking hours.
Reduced Fees: Fewer middlemen can mean lower overall costs.
Transparency & Traceability: Public blockchains make it easier to see where funds go, which appeals to partners concerned about safety.
Possible Issues
Regulatory Uncertainty: Cryptocurrency rules differ from one jurisdiction to another, creating a complex environment.
Volatility (Unless It’s a Stablecoin): Non-stablecoin cryptocurrencies can experience major price swings.
Technical Complexity: Understanding wallets, private keys, and network transaction fees might require specialized knowledge or training.
What the Future Holds
According to ThePaypers, many experts believe that blockchain-based transactions could make up a significant chunk of cross-border payments by 2028. Stablecoins, in particular, are seeing growing interest among importers and exporters seeking faster, lower-fee solutions.
Key Points to Consider Before Selecting a Payment Method
No two businesses are the same. Each has its own volumes, transaction frequencies, and risk tolerance. That makes the decision over which payment method to use quite important.
Transaction Size and Volume: High-value trades might justify the costs of secure methods like Letters of Credit, whereas smaller, frequent payments are often more affordable via digital wallets or blockchain solutions.
Creditworthiness: If you’re a seller dealing with a new buyer, verifying their credit history can guide whether you choose an open account, an LC, or something in between.
Time Sensitivity: Wire transfers aren’t always immediate, so if you need overnight or same-day settlements, a real-time network or blockchain-based tool might serve better.
Exchange Rate Management: If you anticipate volatility in currency markets, forward contracts, local currency settlements, or multi-currency digital wallets can cushion the risk.
Compliance Requirements: Complex regulations affect each of these methods differently. Businesses moving from paper-based processes to digital often adopt invoice automation. Learn more about how B2B invoicing works in Invoice Payments 101: How They Work & Expert Tips.
Where Mural Pay Fits In
For companies seeking a business-first, compliance-ready approach, Mural Pay offers a mix of solutions tailored for international trade. It supports bulk payments (making it ideal for mass vendor payouts), and it also features currency conversion at competitive rates—two popular services for growing tech firms and e-commerce brands that need real-time conversions.
Multi-Currency Payouts: You can send funds in USD, EUR, or local currencies, minimizing the frustrations of exchange rate swings.
Stablecoin On/Off-Ramps: If you’re looking to use a blockchain-based approach, Mural Pay provides direct stablecoin conversion, especially helpful for LATAM businesses wanting faster access to USD-equivalent digital assets.
KYB/KYC Compliance: Mural Pay is built to meet global compliance standards, helping you lower the risk of issues with anti-money-laundering rules.
Single Platform Management: From batch payments to virtual accounts, all these tools are in one integrated dashboard.
If you’d like to discover more about how Mural Pay’s payments feature works for high-volume cross-border transactions, visit the Mural Pay Payments Page.
Trends to Watch for 2025
International trade is more interconnected than ever, so the push for interoperability between payment systems is huge. According to Deloitte, real-time cross-border transaction volumes are estimated to jump significantly by 2025, spurred by new data standards like ISO 20022. This standard allows richer data in payment messages, making it easier for financial institutions to process and reconcile transactions.
Another trend is the ongoing rollout of central bank digital currencies (CBDCs) in regions like China and Europe, offering faster settlement times and lower fees. As these CBDCs become widely available, they may reshape how importers and exporters handle settlements—further increasing competition in the payments sector.
Final Insights
Paying for goods and services between countries doesn’t have to be complicated—or overly expensive. By weighing factors like cost, speed, security, and compliance, you can adopt a strategy that aligns with your operational needs. Traditional methods such as wire transfers and Letters of Credit remain relevant for higher-value deals, while open account arrangements, digital wallets, and blockchain-based options are adding fresh ways to handle global transactions at scale.
If you’re ready for more in-depth guidance on international transaction tools that can accelerate your growth, see our spotlight on Popular Payment Methods for International Trade (Edition). Whether you prefer tried-and-true bank transfers or cutting-edge blockchain solutions, the key is to choose an approach that best fits your volume, timelines, and risk tolerance.
References
ThePaypers. (2023). “The Top Six Payment Trends for 2025.” Available at: https://thepaypers.com/thought-leader-insights/the-top-six-payment-trends-for-2025--1271417
PwC. (2023). “Payments 2025 and Beyond.” Available at: https://www.pwc.com/gx/en/industries/financial-services/publications/financial-services-in-2025/payments-in-2025.html
Deloitte. (2024). “Shaping the Future of Payments: Trends and Insights for 2025.” Available at: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/financial-services/us-shaping-the-future-of-payments-trends-and-insights-for-2025.pdf
