How to Cut Costs on International Supplier Payments From Colombia

For Colombian businesses, making international supplier payments Colombia remains a persistent challenge due to high bank fees, unpredictable exchange rates, and slow settlement times. According to the World Bank, the average cost of sending a cross-border payment from Colombia is over 5.7% of the transaction value, and the country’s annual cross-border B2B payments volume exceeds $10 billion (World Bank, 2023). With Colombia’s e-commerce sector growing at a 27% CAGR and reaching an estimated $7 billion in 2023, reducing these costs is more urgent than ever for exporters, importers, and SMEs.

For businesses also interested in receiving global payments, see our guide to receiving USD payments as a business in Colombia.

Why Traditional Bank Transfers Cost More Than You Think

Traditional bank transfers, especially SWIFT wires, are still the default for many Colombian companies—but they come with hidden costs. Outgoing wire charges can range from $30 to $70 USD per transfer, with additional intermediary bank fees and foreign exchange spreads that often add another 1–3% to the total cost. Banks often advertise low transfer fees but may apply significant FX margins, raising the overall cost of payment beyond what’s initially quoted.

According to SWIFT, the self-reported error rate for international payments was 6% in 2019, leading to costly delays and rejections (SWIFT, 2019).

High fees and unpredictable errors can eat into margins and strain supplier relationships.

Delays are common: a transfer that should take 2–5 business days can sometimes be held up for a week or more due to compliance checks or missing information. Payment failures can lead to loss of supplier discounts or strained trade relationships.

For Colombian exporters, these setbacks not only tie up working capital but can also damage credibility and negotiating power with overseas suppliers. To stay on top of evolving rules, see the latest New FX Regulations in Colombia: What Exporters Need to Know.

The Rise of Fintech and Stablecoin Solutions for Colombian Businesses

The payment landscape is rapidly changing, and Colombian companies are increasingly turning to fintech payment solutions Colombia and stablecoin payments Colombia to streamline cross-border transactions. In 2023, over 60% of Colombian businesses used fintech platforms for at least some international payments, a trend driven by the need for lower costs and faster settlements (Statista, 2024). Digital wallets like Nequi and contactless payments have doubled in usage since 2023, demonstrating a rapid shift in business payment preferences.

Stablecoins like USDC and USDT, which are pegged 1:1 to the US dollar, are gaining traction, enabling businesses to bypass traditional banking rails and settle payments in minutes, often at a fraction of the cost.

Here’s how these innovations stand out:

• Speed: Fintech and stablecoin payments can clear in under an hour, compared to days for SWIFT wires.

• Cost: Stablecoin transaction fees are typically less than 1%, and fintech FX margins are often below 0.5%.

• Transparency: Real-time tracking and digital records make reconciliation and compliance easier. Digital records not only support compliance but also simplify audits and internal reporting.

A recent regulatory innovation is Colombia’s fintech sandbox, which allows companies to pilot new digital asset and payment solutions in a controlled environment (Banco de la República, 2024).

Businesses seeking more on this topic should read about stablecoin options for exporters in Colombia.

Comparing Top International Payment Methods for Colombian Companies

When weighing the best international payment platforms Colombia and the cheapest way to pay suppliers abroad Colombia, a side-by-side comparison is essential.

Buy Now, Pay Later (BNPL) services and PSE online transfers are also expanding in Colombia, though they are more relevant for domestic and consumer payments.

Businesses using batch or automated payments can save up to 60% in transaction fees compared to single/manual payments (McKinsey, 2023).

For a deep dive into platforms, check our post comparing Wise, Airwallex, and Mural Pay for Colombian Exporters.

How to Optimize Supplier Payments—Practical Steps for Colombian Businesses

Optimizing your supplier payments can yield significant savings and operational improvements. Here’s how Colombian businesses can get started:

1. Adopt fintech or stablecoin platforms: These can reduce both transaction costs and settlement time. Colombia’s fintech sandbox program enables businesses to safely test and adopt these new cross-border solutions.

2. Batch your payments: Grouping supplier payments together can cut per-transaction fees by up to 60% (McKinsey, 2023).

3. Open a virtual dollar account: This allows you to hold and pay in USD, minimizing conversion losses—learn more about virtual dollar accounts.

4. Negotiate with suppliers: Many suppliers will offer 1–3% discounts for early or reliable payment (Tipalti, 2024).

5. Maintain comprehensive records: Detailed documentation ensures compliance with FX and tax regulations.

SMEs, in particular, have found that digital payment adoption not only cuts costs but also improves supplier relationships and access to new markets.

The region recorded a 25% growth in business use of digital rails in 2023 alone.

Compliance, Red Flags, and Best Practices for International Payments

What compliance requirements should Colombian businesses know about international payments?

It’s a question nearly every export manager faces: how do you stay compliant and avoid regulatory trouble when moving money abroad? All cross-border payments must be reported to the Banco de la República, and businesses are required to comply with anti-money laundering (AML) and know-your-customer (KYC) protocols. International payments are also subject to tax reporting requirements with DIAN, and failures to comply can result in penalties.

According to the Central Bank: “All international payments must be channeled through authorized intermediaries and declared to the Banco de la República by the beneficiary” (Banco de la República, 2024).

Red flags to watch for include platforms with unclear AML/KYC processes, hidden fees disguised as poor exchange rates, or offers involving unregulated cryptocurrencies.

For a practical checklist, see our cross-border payment compliance tips.

Key Takeaways—Cutting Costs and Boosting Efficiency in 2025

Too many businesses accept high costs and delays as the norm for international supplier payments Colombia, but the landscape is changing. By adopting fintech, stablecoin, and batch payment solutions, Colombian companies can dramatically reduce transaction costs and settlement times. Notably, Latin America saw a 25% year-over-year increase in digital payment adoption in 2023 (Statista, 2024).

The smart move is to always compare the total landed cost—including both fees and FX rates—before selecting a payment method.

Building a reputation for reliability can also help businesses negotiate better terms and discounts with global suppliers.

To see how Mural Pay can help your business cut costs and streamline payments, request a demo.

References

• Banco de la República. (2024). Official FX Regulations for Businesses in Colombia. https://www.banrep.gov.co/en

• McKinsey & Company. (2023). Global Payments Report.

• Statista. (2024). Digital Payment Adoption in Colombia.

• SWIFT. (2019). Annual SWIFT Error Rate Report. https://www.swift.com

• Tipalti. (2024). Best Ways to Pay Your Overseas Suppliers and Vendors.

• World Bank. (2023). Remittance Prices Worldwide.