2025-04-10
10 mins
Blockchain
Stablecoins
Crypto
Fintech
Cross-Border Payments Revolutionised: How Stablecoins Eliminate Traditional Pain Points
Introduction
For businesses operating internationally, cross-border payments have long been a source of frustration. High fees, slow settlement times, opaque exchange rates, low caps on transfer amounts, and complex compliance requirements create significant operational challenges. These pain points are particularly acute for mid-sized businesses that lack the negotiating power of multinational corporations but still need efficient global payment solutions.
At , we have hands-on in helping businesses implement stablecoin-based payment solutions that dramatically enhance their cross-border operations. In this article, we’ll explore how stablecoins are revolutionising international payments and why forward-thinking businesses are adopting them.
The Challenges of Traditional Cross-Border Payments
Before exploring stablecoin solutions, let's examine the limitations of conventional cross-border payment methods.
SWIFT and Correspondent Banking
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) network has been the backbone of international payments for decades, but it comes with significant drawbacks:
- High costs: Fees range from 2-5% of the transaction amount.
- Slow settlement: Transfers often take 3-5 business days to complete.
- Multiple intermediaries: Each correspondent bank adds fees and potential delays.
- Limited transparency: Tracking payments can be difficult.
- Transfer limits: Banks impose limits (typically £10,000-£50,000 per transaction).
- Restricted operating hours: Transfers depend on banking hours and holidays.
Credit Card Networks
While convenient for small transactions, credit cards present challenges for business:
Expensive fees: Merchant fees of 2-3%, plus 1-3% currency conversion markup.
Chargeback risk: Payment reversals can impact businesses.
Limited global acceptance: Not universally accepted in all markets.
High-value limitations: Impractical for larger business transactions.
Traditional Money Transfer Operators
Services like Western Union and MoneyGram provide alternatives, but still face limitations:
- High fees: Especially for larger amounts.
- Transaction costs: Hidden fees and exchange rate markups increase the overall expense of cross-border payments.
- Physical infrastructure: Often requires in-person collection.
- Transaction limits: Typically capped at £5,000-£10,000 per transfer, making them impractical for many business payments.
- Regulatory constraints: Service availability varies by region.
How Stablecoins Transform Cross-Border Payments
Stablecoins solve these pain points by leveraging blockchain technology while maintaining stable value. Here's how:
1. Dramatic Cost Reduction
Traditional cross-border payments cost 2-5% per transaction. In contrast, stablecoin transactions typically cost only a few pennies, regardless of the amount transferred.
🔹 Example: Businesses using stablecoin payment systems have reduced fees by up to 90% compared to international wire transfers.
2. Near-Instant Settlement
Stablecoin transactions settle within seconds or minutes, unlike traditional transfers that take days.
🔹 Example: Bitso's partnership with Bridge reduced settlement times from 3-5 days to under 5 minutes.
3. 24/7/365 Avalability
Unlike banks, stablecoin networks operate continuously. This is especially useful for businesses in multiple time zones.
🔹 Example: Humanitarian organisations use stablecoins to distribute emergency funds on weekends and holidays.
4. Reduced FX Complexity
Stablecoins act as a universal settlement layer, simplifying currency exchange.
🔹 Example: Companies using BVNK's business stablecoin guide reduced FX costs by consolidating currency pairs.
5. Enhanced Transparency & Security
Blockchain provides immutable transaction records with real-time tracking.
🔹 Example: NGOs and government entities use stablecoins for transparent aid distribution.
How Businesses Can Implement Stablecoin Payments
Implementation Considerations for Different Business Sizes
For Mid-Sized Businesses (50-250 employees)
Mid-sized businesses often benefit the most from adopting stablecoin-based payment solutions, as they have significant international payment needs but lack the negotiating power of larger enterprises.
Recommended Implementation Approach:
- Start small: Identify a specific use case (e.g., paying international contractors or suppliers) to pilot stablecoin payments.
- Partner strategically: Work with trusted experts like , who understand both the technical and operational aspects of implementation.
- Use third-party payment processors: Consider stablecoin payment platforms that offer fiat on/off ramp capabilities to reduce complexity.
- Establish proper accounting procedures: Ensure digital asset handling is aligned with internal finance policies.
- Upskill your team: Provide training for finance teams to understand new payment flows and compliance processes.
📌 Example solution: Stripe's USDC payment integration allows businesses to send low-cost payments to recipients in over 160 countries, with significantly faster settlement times and reduced fees compared to traditional methods.
For Larger Enterprises (250+ employees)
Larger organisations typically require more robust, scalable solutions that align with complex treasury operations and compliance mandates.
Recommended Implementation Approach:
- Roll out in phases: Begin with targeted corridors or business units to test impact and integration.
- Integrate with existing systems: Choose partners who can connect stablecoin rails with your ERP and treasury management infrastructure.
- Prioritise compliance and controls: Implement rigorous risk management and auditing practices from the outset.
- Secure digital asset custody: Use enterprise-grade custody providers to safeguard assets with appropriate internal access controls.
📌 Example solution: Fireblocks offers secure custody infrastructure for stablecoin treasury operations, widely adopted by enterprises through trusted integration partners like .
Case Study: BytePitch and Unblock - Enabling Stablecoin Payments
collaborated with Unblock, a stablecoin payments company that facilitates cross-border transactions and provides stablecoin-to-fiat ramp services for businesses.
Project Overview
The goal was to build their stablecoin payment infrastructure from scratch, focusing on:
Developing secure integration points between traditional banking systems and blockchain networks.
Implementing robust compliance monitoring solutions.
Creating standardised integration flows (APIs and an SDK) for businesses unfamiliar with blockchain technology.
Optimising transaction flows to minimise costs and settlement times.
Regulatory Considerations for UK Businesses
UK Regulatory Landscape
UK businesses implementing stablecoin payment solutions need to stay informed about the evolving regulatory environment.
As of 2024, the UK's Financial Services and Markets Act includes specific provisions for regulating fiat-backed stablecoins. The Financial Conduct Authority (FCA) currently oversees anti-money laundering (AML) compliance for cryptoasset businesses, while HM Treasury is leading broader regulatory developments.
Practical Compliance Steps
To ensure regulatory alignment, UK businesses should:
✅ Due diligence: Select regulated stablecoin providers and payment partners.
✅ Record-keeping: Maintain detailed transaction records for accounting and compliance.
✅ Risk assessment: Document your approach to managing risks associated with stablecoin usage.
✅ Policy development: Create clear policies for stablecoin treasury management.
✅ Stay informed: Monitor regulatory developments through resources like the FCA's cryptoasset pages.
Tax Considerations
The HMRC provides guidance on cryptoasset taxation, including stablecoin usage. Businesses should:
Record the pound sterling value of stablecoins at the time of each transaction
Account for any foreign exchange gains or losses when converting between currencies
Consult with tax advisors to ensure the correct treatment of stablecoin-related transactions.
Getting Started with Stablecoin Payments
For businesses looking to implement stablecoin payments, here's a practical roadmap:
Step 1: Assess Your Current Payment Flows
🔹 Identify high-cost international payment corridors. 🔹 Calculate saving potentials. 🔹 Document operational pain points.
Step 2: Select the Right Partners
🔹 Work with specialists like BytePitch for seamless integration. 🔹 Choose trusted stablecoin payment providers. 🔹 Evaluate on/off-ramp services for fiat conversion.
Step 3: Launch a Pilot Project
🔹 Start with a specific payment flow. 🔹 Define success metrics. 🔹 Provide training for finance teams.
Step 4: Scale Gradually
🔹 Expand usage across additional regions. 🔹 Deepen integration with ERP & treasury systems 🔹 Stay updated on evolving regulations.
Conclusion
Stablecoins are reshaping cross-border payments, offering speed, cost efficiency, and transparency that traditional banking lacks. Businesses that act now can gain a competitive edge while improving financial operations. Partnering with experts like ensures a smooth, compliant transition to stablecoin-powered payments.
In the next article, we'll explore the business case for stablecoins—offering a practical framework for calculating ROI and building internal support for implementation.
👉 to learn how stablecoins can streamline your cross-border payments and unlock long-term efficiency gains.
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