Big companies and small companies are not the same. The most obvious difference is sheer size, but the indirect effects of this size have effectively erected an operational wall between what the world’s multinationals do for their day-to-day growth and what local businesses do on the high street.
But the new results in “The cross-border opportunity: What global sourcing by US SMEs means for payment service providers“, PYMNTS Intelligence and MasterCard The collaboration reveals that the wall between corporate operations and SMB workflows is becoming more porous. As international sourcing becomes routine rather than exceptional, small businesses in America inherit project finance responsibilities ranging from foreign exchange management to supplier liquidity and cross-border cash flow.
Nearly 6 in 10 U.S. small and medium-sized businesses surveyed (57%) now purchase goods or production inputs from outside suppliers, while nearly three-quarters of companies generate between $1 million and $10 million in annual revenue sources internationally. Even among companies that earn less than $150,000 annually, more than 4 in 10 now buy from foreign suppliers.
This shift is redefining what modern SME finance teams are expected to do.
Global trade gives small businesses new jobs for the treasury
The globalization of supply chains is quietly creating a globalization of financial operations. While millions of companies still consider themselves local or regional operators, the bulk of them now manage the financial challenges that until recently were almost exclusively owned by multinational corporations with dedicated teams to manage foreign exchange exposure, improve global liquidity, monitor cross-border cash flows, and negotiate payment terms across international supplier networks.
In contrast, small businesses balanced their checkbooks, paid vendors, and managed working capital largely within local banking systems. At least they got used to it. The report shows how quickly these global purchasing strategies are spreading. International sourcing is no longer concentrated among manufacturers. Retailers, hospitality companies, entertainment companies and other service companies rely on outside suppliers for specialty products, equipment and inventory. Global procurement has become part of normal business operations rather than an indicator of the scale of multinational companies.
However, the report finds that nearly two-thirds of internationally active SMEs continue to pay external suppliers primarily in US dollars, despite significant sourcing from markets across Asia and Europe. Only a small minority deal primarily in the suppliers’ local currency.
Ostensibly, paying in dollars simplifies the accounting process for U.S. companies. However, in practice, they often shift the costs of currency conversion and exchange rate uncertainty onto suppliers, who often recover these costs through pricing or building additional risk premiums into trading relationships.
A payment sent to a manufacturer in China, an equipment supplier in Germany, or a specialty food producer in Mexico requires more than just transferring money. It asks questions about exchange rates, settlement timing, banking infrastructure, liquidity planning and payment preferences of suppliers. Each transaction becomes a decision on how efficiently cash can be moved across borders.
Read the report: The cross-border opportunity: What global sourcing by US SMEs means for payment service providers
The report also points to another structural shift: payments are becoming an integral part of broader operating programs rather than existing as standalone banking activities. Traditional financial institutions are still the dominant provider of cross-border payments, but fintech platforms are gaining adoption while receiving the highest satisfaction scores among non-crypto payment providers. At the same time, accounting platforms with built-in payment capabilities continue to expand their role within SME finance operations.
Just as CRM has become an integral part of sales workflows and AI is increasingly working within productivity applications, treasury capabilities are gradually becoming integrated into day-to-day financial operations. Instead of logging into separate banking portals to initiate international transfers, SMB financial professionals increasingly expect payments to take place directly within accounting systems, procurement workflows and enterprise software platforms.
The modern SME finance leader increasingly balances bookkeeping, forecasting, accounts payable, procurement support and international treasury decisions simultaneously. For SMEs with limited financial staff, reducing operational complexity may be as valuable as reducing transaction costs.
Ultimately, the report suggests that the future competitive landscape among SMEs may not be determined solely by who discovers the best suppliers abroad. It may depend on who manages those global relationships most effectively.
