Why smart CFOs are moving away from bank wires to save on FX and fees
Paying international suppliers in USD might seem straightforward – send a wire from your bank, and you’re done. But behind the scenes, those payments are often riddled with hidden costs that silently drain your margins.
For CFOs and procurement managers managing multiple transfers every month, those costs can add up to tens of thousands of dollars per year.
Here’s the truth about USD supplier payments, a breakdown of the hidden fees, and how businesses are cutting costs by up to 50% by using platforms like Yativo.
💸 What Your Bank Isn’t Telling You About USD Fees
When you wire USD to a supplier, here’s what really happens:
- Wire Fees: minimum fees from $25–$50 per transaction depending on the transaction size and the bank, and average take rate of 1%
- Intermediary Bank Deductions: $10–$30 taken by banks in the middle of the chain
- FX Markups: If the supplier’s bank converts USD into another currency (CNY, MXN, BRL), the markup can be 2–4% above market rate
- Delivery Uncertainty: Suppliers often receive less than expected, straining trust and requiring manual reconciliation
So while you thought you were paying $10,000, your supplier may only see $9,700–$9,800 after all deductions. Multiply that by 10 payments, and you’ve lost $2,000–$3,000.
📊 A $10K Transfer: Banks vs. Yativo
Let’s compare the same $10,000 USD payment using a traditional bank vs. Yativo.
🏦 Bank Wire
- Wire fee: $100 (1%)
- Intermediary bank deduction: $25
- FX markup: 2% = $200
- Supplier receives: $9,675 USD
🌎 Yativo
- No intermediary bank
- Uses stablecoins (USDC/USDT) as the settlement layer
- Converts at transparent, real-time FX rates (estimated markup 0.25%)
- Flat platform fee ($10)
- Supplier receives: $9,965 (directly in local CNY, or USD)
Savings per transfer: ~$290 USD
On 50 payments a year, that’s $14,503 saved.
🔀 FX Markups vs. Stablecoin Parity
One of the biggest hidden costs in supplier payments is the FX spread.
Banks typically advertise “no transfer fee,” but make their money by offering a worse exchange rate. For example:
- Market rate: 1 USD = 7.20 CNY
- Bank rate: 1 USD = 7.00 CNY
- On a $10K transfer, that’s 2,000 CNY lost ($280 USD)
Yativo avoids this by:
- Onramping local currency (CLP, BRL, MXN) into stablecoins (USDC/USDT)
- Settling at near-parity with the USD
- Offramping into supplier’s local currency (CNY, SGD, HKD, etc.) at competitive, transparent FX with very low spreads of 25 to 50 bps.
The result? Suppliers receive more, faster, with no guesswork.
🛠️ Action Plan: How to Cut Your Supplier Payment Costs in Half
Here’s how finance leaders are making the switch:
Step 1: Audit Current Costs
Look at your last 10 supplier payments. Add up wire fees, intermediary bank deductions, and FX losses.
Step 2: Talk to Suppliers
Ask if they’d prefer to receive payments in local currency (CNY, MXN, BRL, etc.) instead of USD wires. Most will say yes.
Step 3: Open a Yativo Account
Fund your account in USD, USDC/USDT, or local currency (CLP, BRL, MXN). You can also create multiple international bank accounts for your business in several countries.
Step 4: Start Small
Route one supplier payment through Yativo. Compare how much they receive vs. a bank wire.
Step 5: Scale Across Treasury
Automate payouts via Yativo’s API or dashboard, and roll it out across all suppliers to maximize savings.
✅ Why CFOs Are Choosing Yativo
- Lower Costs: Save up to 90% per transfer by cutting FX and wire fees
- Speed: Same-day settlement instead of 3–5 days
- Transparency: Real-time FX rates, no hidden deductions
- Compliance: Full KYB, AML screening, and transaction logs
- Supplier-Friendly: Suppliers receive local currency via local rails (Pix in Brazil, SPEI in Mexico, CNY in China)
🚀 Final Thoughts
Paying suppliers in USD through banks might feel safe, but it’s expensive and outdated. Between wire fees, FX spreads, and delivery delays, you’re often losing 2–3% of every transfer.
By using stablecoin settlement via Yativo, CFOs are cutting costs, paying suppliers faster, and strengthening relationships by ensuring suppliers receive the exact agreed amount.
👉 Explore Yativo Supplier Payments
👉 Talk to our team to cut your payment costs by half