New Payment Networks Turn Currency Into a Treasury Tool

Cross-border commerce has traditionally tied the buyer’s payment currency, the invoice currency and the merchant’s settlement currency to the same payment path. That structure can force companies to pre-fund accounts in multiple markets and let payment mechanics dictate when foreign exchange occurs. Emerging networks separate those choices, giving corporate treasurers greater control over liquidity, hedging and working capital while allowing customers to retain a local checkout experience.

The latest report, “Currency Just Became Treasury’s Newest Superpower,” says companies can accept a local payment, invoice in another currency and select settlement according to treasury needs. Fintech platforms and real-time settlement technology can consequently reduce pre-funding and unlock cash held across markets. The report did not identify a network operator, participating company, launch date, transaction amount or quantified savings, leaving the gains to be tested against each company’s exchange rates, fees and cash-conversion cycle.