Panic-proofing finance

Every CFO knows that the first casualty of a downturn isn’t growth - it’s confidence. The instinct to freeze budgets and hoard cash is powerful, but it’s also the quickest way to stall momentum when your business needs agility most. This phenomenon, often called panic financing, is understandable as cutting budgets and freezing spending can feel like the safest way to weather a storm.

 

Panic financing feels rational because it offers control. But the irony is that by trying to protect the balance sheet, many CFOs end up weakening it and starving the very systems that generate liquidity in the first place.. Over time, this narrows strategic options rather than expanding them.

 

Forward-looking CFOs are recognising that the answer lies not in simply spending less but in spending smarter, particularly when it comes to payments. Far from being just a back-office process, payments are a critical part of a business’s ability to generate cash and reinvest in growth. Optimising this function can transform financial performance, giving companies the agility they need to thrive even in turbulent times. How money moves matters as much as how it is made.

 

 

Why payments should be on every CFO’s agenda

Payments determine whether hard-won customer demand turns into cash. When your payments strategy underperforms, revenue leaks through false declines, high cross-border and FX fees, slow settlement, and poor customer experience. Cross-border B2B payments are projected to exceed $56 trillion by 2030, yet a large share of that value is still slowed by legacy rails and unnecessary fees. For mid-market and enterprise organisations alike, even small inefficiencies compound across thousands of transactions.

 

Payment delays, lost revenue, false declines, and payment leaks all create significant opportunity costs, especially for small and medium enterprises (SMEs). For these businesses, inefficient payments can spiral into something much more dangerous than just operational issues; they can mean the difference between seizing growth opportunities and missing them entirely. 

 

Payment costs also directly influence pricing decisions, which in turn affect a business’s ability to compete globally. The companies that thrive are those that optimise their payment operations rather than simply absorbing these costs into their pricing models. 

 

 

From cost centre to growth enabler

CFOs who succeed in today’s competitive landscape are those who turn payments into business advantage. When payment systems are optimised, businesses can turn financial pressure into opportunity, gaining efficiency, reducing costs and improving performance, thus making businesses more resilient to economic challenges.

 

Reducing transaction fees, eliminating hidden costs like conversion charges and intermediary commissions, and accelerating settlement times can all unlock significant value. In a world where opportunity moves in real time, waiting days for a settlement is a strategic liability, while modern solutions such as Virtual Bank Account Numbers (VBANs) improve speed, transparency, and cost control.

 

When payments are treated as a strategic lever and not as a back-office expense, CFOs can boost their companies’ profitability, improve competitiveness, and position them for sustainable growth. 

 

 

The cross-border challenge

One area that CFOs typically neglect is cross-border payments. Hidden friction, high fees, and poor authorisation rates can create invisible revenue leaks. In fact, 40% of businesses report cross-border authorisation rates below 70%. For companies operating internationally, this is a significant economic risk.

 

Businesses expanding internationally often overlook local payment methods (LPMs). With emerging markets bringing new revenue but also complex local preferences, many CFOs dismiss these as an operational burden. Ignoring LPMs and local currencies, however, risks checkout abandonment, as customers are more likely to leave if their preferred payment option isn’t available—ultimately stunting growth.

 

To capture more of that value, businesses need to think beyond simply “accepting international payments.” A localised strategy is key. Presenting customers with their preferred payment methods, showing prices in local currencies, and matching the checkout experience to regional expectations can dramatically reduce abandonment. Likewise, tapping into domestic payment rails rather than relying solely on international card networks can cut processing times and reduce transaction costs, both of which free up working capital.

 

Transparency is equally crucial. Customers want to know what they are paying and why, and hidden FX markups or opaque fees erode trust quickly. By offering transparent, upfront pricing and adopting real-time or next-day settlement, CFOs can not only improve customer satisfaction but also gain more predictable cash flow, which is invaluable for planning during volatile periods.

 

If CFOs integrate the right technology into their payment processes and increase transparency, they’ll find it’s easier to identify and solve the problems preventing them from boosting revenue. CFOs must not succumb to panic and react to problems; instead, they must be proactive and fine-tune each step of the payment process to ensure efficiency. 

 

 

The CFO’s call to action

In times of economic uncertainty, panic financing narrows options. It trades long-term competitiveness for short-term reassurance. In contrast, payment excellence expands them, giving businesses the flexibility to adapt, grow, and lead.

 

CFOs who thrive in turbulence aren’t those who react the fastest, but those who rethink how value flows through their organisations. Payments optimisation is very powerful, yet often overlooked. Companies that convert demand into revenue, settle payments quickly, and offer a frictionless checkout experience are better positioned to protect income and reinvest in growth.

 

The first step is visibility. They need to truly understand authorisation rates, cost of acceptance, and days-to-cash across every market and payment method. CFOs also need to quantify these metrics to identify bottlenecks, set benchmarks, and track improvements over time. The next step is using these insights to eliminate friction and turn payments into a source of resilience and reinvestment.

 

In today’s economy, control isn’t just about cutting costs; it’s about accelerating what drives growth. CFOs who take a proactive approach to payments won’t just survive uncertainty; they’ll build a financial engine for innovation, competitiveness, and long-term value creation.

 

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Brian Gaynor is European Chief Executive at BlueSnap

 

Main image courtesy of iStockPhoto.com and Dragon Claws