Like-for-like settlement means you receive money in the same currency the payer used. A customer pays in euros, you receive euros. Nothing is converted on the way, so nobody gets the chance to mark up a conversion you did not ask for.
Where the term comes from
The phrase comes from merchant acquiring. Checkout.com describes it as settling a payment in the same currency as the original transaction. Airwallex describes it as being paid in the currency your customer paid in, without a forced conversion into your home currency. Both present it as a way to avoid the conversion fee that comes with automatic conversion and to keep more control over currency risk. Both are written for businesses selling to customers abroad, and both are providers describing their own products, so read them as that rather than as neutral benchmarks.
What it saves, and what it does not
It removes one conversion. If you collect in euros and hold euros, the conversion step disappears and so does any markup on it. Airwallex illustrates the size of the effect with an assumed 2% markup on incoming sales and on outgoing spend. That figure is an assumption in its example, not a measured rate.
It does not remove other fees, it does not change how long a local bank rail takes, and it does not help when you need the money in a different currency from the one the payer used.
Two conditions have to hold. The provider must be able to settle in that currency, and you must be able to hold it, which usually means a multi-currency account. The Airwallex guide makes the second point itself: accepting several currencies is not the same as settling in them.
Where it stops working
Like-for-like needs both sides to use the same currency. In B2B payments they often do not. A buyer pays an invoice in EUR and the supplier is paid in TRY. No setting on the receiving side can make that like-for-like, because the currency really does change. What you can control is how many times it changes, and where.
| Situation | Route | Conversions |
|---|---|---|
| Payer and payee use the same currency | Like-for-like, paid from a balance in that currency | 0 |
| Payer pays EUR, payee needs TRY, routed via USD | EUR to USD, then USD to TRY | 2 |
| Payer pays EUR, payee needs TRY, direct pair | EUR to TRY | 1 |
Illustrative scenario. Each conversion is a point where a spread can apply. For illustration only: at an assumed 1% per conversion, two conversions cost about 2% and one costs about 1%. The 1% is an assumption, not a Modality quote.
The B2B rule of thumb
Stay like-for-like wherever both sides use the same currency: hold balances in the currencies you are paid in, and pay suppliers from them. Where the currency has to change, convert once, on a direct pair, at a rate you can see before you commit.
The alternative is a correspondent-bank route with several legs. Modality estimates the combined cost of a typical route at 1.5–3% and the time at 2–5 business days. Those are estimates, not a published benchmark, and they vary by corridor, bank and amount.
Where Modality fits
Modality gives businesses balances in 36 currencies and settles any of 630 direct pairs, 24/7, with the rate quoted before you commit. That covers both halves of the rule. Balances let a payment stay like-for-like when the currencies match. Direct pairs mean a payment that must change currency converts once instead of twice. Licensed partners hold the funds; Modality provides the accounts, quoting, conversion, routing and settlement software.
One limit applies: a local bank rail keeps its own opening hours at the edges, and a direct pair does not change that. To see how a specific pair routes, use the pair checker or read how 630 direct pairs are counted. For a worked comparison of the two routes, see correspondent banking vs stablecoin settlement.
Talk to Modality. See your real rate before you commit.
Five questions to ask a provider
- Which currencies do you settle in without converting, and is the list the same for every account?
- Do I need a separate account or entity in each market, or is that handled for me?
- When a conversion cannot be avoided, is the rate shown before I commit, and is the markup stated?
- How soon is the money usable, and does that change at weekends or on local holidays?
- If I need to pay out in a currency I did not collect in, how many conversions happen?
On the second question, the two explainers above disagree. One lists setting up a local entity as a step; the other says a local entity in each market is not needed. Ask rather than assume.
FAQ: Like-for-Like Settlement
What is like-for-like settlement?
Being paid in the same currency the payer used, with no conversion in between. It is a term from merchant acquiring, where a provider would otherwise convert sales into the merchant's home currency.
Is like-for-like settlement the same as multi-currency settlement?
Not necessarily. Accepting payments in several currencies does not guarantee that the provider settles to you in those currencies. Airwallex draws this distinction in its guide. Check which currencies a provider actually settles in.
Can cross-border B2B payments be like-for-like?
Only when payer and payee use the same currency, for example when you pay a supplier from a balance held in the currency of the invoice. When the currency has to change, the aim is to convert once on a direct pair rather than twice through USD.
Does like-for-like settlement make a payment free?
No. It avoids one conversion and any markup on that conversion. Other fees, rail cut-off times and timing still apply.
Sources
- Checkout.com, Like-for-like settlement for merchants explained (published 27 October 2023, read 6 November 2026)
- Airwallex, What is like-for-like settlement? Malaysia guide (published 28 July 2026, read 6 November 2026)
Both sources are provider marketing. Their currency counts and rate claims are their own and are not independently verified here.
Related: Which payment rails run on weekends? A calendar by currency.