How cross-border payments work in Australia-Asia trade
Australian businesses trade more with Asia than with any other region, and for many, it’s central to how their business operates day to day. From China and Japan to Singapore, South Korea and Southeast Asia, these corridors underpin a huge share of Australia’s import and export activity.
But while the trade routes are regional, the way payments move through them often isn’t.
In practice, a large proportion of Australia–Asia trade settles in USD, even when suppliers are based in Asia and operate locally. For many businesses, this has become so normal that it rarely gets questioned, yet it has real implications for cost, visibility and control.
Why Australia-Asia trade often settles in USD
On the surface, it’s easy to assume that payments follow geography. Singapore suppliers invoice in SGD, Japanese suppliers invoice in JPY, and Chinese suppliers invoice in CNY.
In practice, that’s often not how cross-border trade works.
Across many Asia corridors, USD remains the dominant settlement currency. This is especially common for manufactured goods, electronics, components, energy and cross-border services. Suppliers often price in USD to reduce their own FX exposure, standardise pricing across customers or align with upstream supply chains that are already USD-based.
For Australian businesses, the result is straightforward: even when trading with Asia, you’re often paying in USD. And once USD invoicing becomes standard, it rarely gets revisited.
How default USD payments increase FX costs over time
Paying in USD isn’t inherently a problem. In fact, for many businesses it’s unavoidable.
The issue isn’t USD itself, it’s that USD payments often sit on autopilot. Conversions happen transaction by transaction. Fees are accepted as part of the process. Multiple platforms and accounts creep in over time. FX margins are rarely revisited once things are “working”, even as volumes change.
Individually, these frictions feel small. Over time, they compound, especially as volumes grow or supplier bases expand across multiple markets.
Because USD settlement is so common, these costs are easy to overlook. They don’t feel like inefficiencies; they feel like the price of doing business.
Why FX costs hit Australian SMEs and mid-sized businesses first
Large enterprises typically have treasury teams, negotiated FX pricing, and dedicated infrastructure to manage currency exposure. For them, FX is a strategic function.
For many Australian SMEs, it’s purely operational.
Payments are something that needs to happen reliably and quickly so the business can keep moving. That often means sticking with whatever setup works, even if it’s not particularly transparent or cost-efficient.
As trade with Asia increases, this gap widens. More suppliers. More currencies. More USD invoices. More pressure on finance and operations teams who already wear multiple hats.
The challenge isn’t sophistication, it’s bandwidth.
Managing Asia supplier payments with greater visibility and control
The opportunity here isn’t to avoid USD or force local currency where it doesn’t make sense. It’s to be more deliberate about how USD and other major currencies are managed.
It starts with visibility: understanding which suppliers actually require USD, how often conversions are happening, and what those costs look like in aggregate. From there businesses can simplify by consolidating payments, reducing unnecessary FX conversions and choosing tools that reflect how trade really settles, not how it looks on a map.
When payment workflows are designed intentionally, the benefits start to compound. Costs become clearer. Admin reduces. Scaling into new markets feels less painful.
When it makes sense to review your FX and payment setup
When we look closely at Australia–Asia payment behaviour, one thing stands out: many businesses are paying more in FX fees than they realise, simply because of how default USD payments are handled.
To help businesses reassess their setup, we’re currently offering no FX conversion fees on the first AUD $100,000 transferred for new customers*. It’s a practical way to test a different approach to managing overseas supplier payments, without paying FX fees to start.
Key takeaway for Australian businesses trading with Asia
If you trade with Asia, USD payments are probably already part of your business. The real question is whether the way you manage them still makes sense as your operations grow.
Understanding payment corridors, not just trade corridors, is often the first step toward building something better.
Learn more about managing Asia supplier payments with fewer FX fees, and more control. Read about our limited time offer* here.
* The limited time offer will run from 5 February 2026 until 5 May 2026.