UK Firms Stick to US Dollar for 70% of International Payments Despite De-Dollarisation Talk

UK businesses remain heavily reliant on the US dollar for international trade, with the currency accounting for 70% of outbound payments in the first half of 2026. This persistent dominance exposes firms to significant exchange rate volatility, particularly as geopolitical shifts and trade tensions begin to challenge the dollar’s long-standing status as the primary global reserve currency.

What was announced

The second edition of the Speed of International Payments barometer reveals that the US dollar’s grip on UK corporate payments remains firm. While the share dropped slightly from 72% in 2025 to 70% in the first half of 2026, the figure highlights a distinct divergence from European counterparts. Across the broader European client base, the dollar accounted for only 54% of payments during the same period, a 16-percentage point gap that has persisted since the previous year. These findings reflect the activity of iBanFirst's own customer base rather than the wider UK business population, measuring the number of payments made rather than their total value.

The data identifies a significant shift in trade routes, with USD payments to China and Hong Kong emerging as the two most frequent corridors for UK businesses. Collectively, these routes represented 25% of all outbound transactions tracked. Notably, neither of these destinations featured among the top six corridors in 2025, where even the smallest of those six accounted for less than 1% of payments. These specific routes are characterized by slower settlement times due to time zone differences and intensified compliance and sanctions screening.

Despite the inherent risks of currency fluctuation, only 20% of UK clients currently utilize FX forward payments to lock in exchange rates. Without these protections, businesses are vulnerable; for instance, a 1% shift in the GBP/USD rate—which stood at approximately 1.32 in October 2026—can alter the cost of a $1 million payment by roughly £7,600 within a single day. This risk is particularly acute for importers who agree to deals in dollars but settle the transaction days or weeks later.

"Dollar invoicing is often set by the supplier, not the buyer," said Vivek Savani, UK Country Manager at iBanFirst. "A UK business importing from Asia or the US is frequently just quoted in dollars. Changing that usually means renegotiating a supply contract, not just adjusting a payment instruction, which is why it doesn't happen quickly even when the political conversation has moved on."

Vivek Savani, UK Country Manager at iBanFirst.

The companies involved

iBanFirst is a financial services provider specializing in international payments and foreign exchange for mid-sized businesses. The company operates as a cross-border payment platform that integrates currency risk management with transactional banking, positioning itself as a streamlined alternative to traditional correspondent banking networks. Headquartered in Europe, the firm is backed by its parent company, Marlin Equity Partners.

The company has focused heavily on the UK market recently, leveraging its status as an Electronic Money Institution (EMI) to facilitate faster and more transparent cross-border flows. By providing businesses with access to multi-currency accounts and hedging tools, the firm competes directly with legacy banks that often struggle with the transparency and speed required for modern international trade. Its market position is defined by its ability to handle complex corridors, such as those into Asia, while providing real-time data on payment status and currency exposure. This infrastructure is increasingly critical as UK businesses navigate the complexities of global trade and shifting supply chains. FF News has published 12 stories regarding the firm's development and market activities.

What FF News has reported before

FF News has closely followed the expansion and technological evolution of the firm. In early 2025, the company reached a significant regulatory milestone when Fintech iBanFirst Secures UK EMI License to Expand Market Operations, providing the foundation for its current UK growth. This was followed by the introduction of localized tools, including when iBanFirst Launches iBanPay, Its New AI Assistant to the UK in October 2025. The leadership team also saw changes during this period, as noted in iBanFirst Appoints New Deputy CEO and Non-Executive Director. More recently, the firm has integrated advanced artificial intelligence into its service suite, a move covered in iBanFirst Turns Excel into a Live Treasury Agent with Claude AI Integration, which allows treasury teams to interact with financial data through natural language processing.

What this means

The data suggests a profound disconnect between geopolitical "de-dollarisation" narratives and the operational reality of global trade. While political leaders discuss alternatives to the greenback, the "stickiness" of commercial contracts ensures the dollar remains the default for UK-Asia trade. This inertia places significant pressure on payment providers to offer more accessible hedging tools, as the volatility of the pound remains a constant threat to thin margins. The emergence of China and Hong Kong as dominant corridors also signals a shift in supply chain focus, forcing the industry to balance the need for speed with increasingly stringent compliance requirements. The central question remains whether SMEs will eventually demand non-dollar settlement to mitigate these persistent risks.