Journal of Applied
Finance & Research

Abstract

We investigate how small and medium sized exporters select between correspondent banking channels and emerging real time settlement rails for cross border invoices. Using a survey of 1,240 firms across nine jurisdictions, combined with anonymized transaction data, we identify the principal frictions that delay adoption and quantify the working capital benefits realized by early movers. The analysis offers a formal account of how interoperability standards, foreign exchange transparency, and counterparty assurance jointly determine rail selection at the firm level.