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Articles / payments-fintech-infra / Small Businesses Push Overseas as Payment Friction Threatens Cash Flow

Small Businesses Push Overseas as Payment Friction Threatens Cash Flow

Jun 4, 2026 · Source: pymnts.com · Topic:  payments-fintech-infra · fintech
SMBs Purchasing Overseas
57%
Percentage of U.S. SMBs that purchase goods from overseas suppliers.
Revenue Segment Engaging in Global Sourcing
73%
Percentage of firms generating between $1 million and $10 million in annual revenue that engage in global sourcing.
SMBs Using FinTech for Payments
91%
Percentage of SMBs that use FinTech partners for cross-border payments and rate their experiences positively.

§ 01 Executive Snapshot

  • What: Small to medium-sized businesses (SMBs) in the U.S. are increasingly sourcing goods internationally, highlighting the need for improved cross-border payment solutions.
  • Who: Mike Kresse, EVP at Mastercard, and U.S. SMBs engaged in international commerce.
  • Why it matters: The shift to global sourcing among SMBs signifies a changing landscape in international trade, necessitating better payment infrastructures to support cash flow and supplier relationships.

§ 02 Key Developments

  • 57% of U.S. SMBs purchase goods from overseas suppliers, indicating a significant shift towards international commerce.
  • Among firms with $1 million to $10 million in revenue, 73% engage in global sourcing, showcasing the trend among smaller enterprises.
  • 63% of internationally active SMBs primarily pay overseas suppliers in U.S. dollars, while only 4% use local currencies, reflecting a preference for simplicity despite potential risks.
  • 43% of SMBs identified faster processing and settlement times as the top area for improvement in their payment systems.
  • 91% of SMBs use FinTech partners for cross-border payments, rating those experiences positively due to straightforward interfaces and clearer payment journeys.

§ 03 Strategic Context

  • The rapid evolution of SMB operational models has outpaced the development of supporting payment infrastructures, creating friction in cross-border transactions.
  • As SMBs expand their supplier networks internationally, the complexity of navigating different banking rails and currency rules becomes increasingly pronounced.

§ 04 Strategic Implications

  • Immediate market consequences include a heightened demand for seamless cross-border payment solutions that enhance supplier confidence and cash flow.
  • Long-term implications suggest that payment execution will increasingly influence SMBs' choice of suppliers and payment providers, compelling firms to innovate in their offerings.

§ 05 Risks & Constraints

  • Potential risks include regulatory complexities and the technical challenges of integrating diverse payment systems across different geographies.
  • Competition from various payment providers may lead to fragmentation in the market, complicating the procurement strategies of SMBs.

§ 06 Watchlist / Forward Signals

  • Watch for developments in cross-border payment technologies that aim to simplify international transactions for SMBs.
  • Future success indicators will include the ability of payment providers to deliver transparent, efficient, and cost-effective solutions that enhance cash flow management.
§ 07

Frequently Asked Questions

What percentage of U.S. SMBs purchase goods from overseas suppliers?

57% of U.S. SMBs purchase goods from overseas suppliers, indicating a significant shift towards international commerce.

Why do SMBs prefer to pay overseas suppliers in U.S. dollars?

63% of internationally active SMBs primarily pay overseas suppliers in U.S. dollars for simplicity, despite potential risks.

How are SMBs addressing payment processing issues?

43% of SMBs identified faster processing and settlement times as the top area for improvement in their payment systems.

Who is influencing the demand for better cross-border payment solutions?

Mike Kresse, EVP at Mastercard, and U.S. SMBs engaged in international commerce are highlighting the need for improved cross-border payment solutions.

§ 08

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