How Crypto Can Streamline Cross-Border Payments for Your Business

In today’s economy, even small businesses can operate globally, sourcing customers and labor from diverse locations.  This means that every business needs a reliable system in place to facilitate cross-border transactions.

Using crypto to make such payments comes with a variety of benefits for both the business and its customers.  In this article, we’ll talk about why crypto can streamline international payments and why a small business should consider implementing it, even if their users will take a while to get used to the relatively new technology.

The Problem with the Traditional Payment Options

Cross-border transactions can also be made with fiat money, as they have been for decades, if not centuries.  However, this method has its problems, mostly to do with the technology used to log the transfer.  For instance, it’s rather slow, and sometimes, it can take a few business days to actually transfer the funds.

There’s also administrative overhead and fees to consider, as well as the cost of currency conversion.  All of these burden the customer the most, and from a business perspective, placing additional burdens on a customer is the worst thing one can do.

How Crypto Payments Make Things Simpler?

Crypto payments are made on a blockchain network and therefore don’t require the services of a centralized payment system.  Transferring funds from one wallet to another is easy enough to do, even for those who don’t know much about crypto technology, and the funds are available right away.

Crypto payments can also be made anonymously, or at least they could until recently.  Experts such as those from Webopedia, have written that the crypto adoption is much wider than before, many countries are instituting stricter laws regarding anonymity, as there are many more crypto users.

Five Ways Crypto Payments Streamline Cross-Border Payments

Crypto payments streamline cross-border payments in numerous ways.  Different types of businesses and customer bases benefit from different crypto features.

Speed

Payments made with crypto are instantaneous.  This is the case regardless of how big or small the payment is and how many recipients it has.  Compared with fiat payments, which sometimes take five days, this is a game changer.  Such a feature is especially useful in payments where time is of the essence, such as making a payment while the price is low.

Cost-Efficiency

Blockchain networks enable users to transfer funds at a very low cost, as low as a few cents per transaction.  That’s because there are no intermediaries involved, and therefore there are fewer parties to be paid.  For a business, it means that it gets to keep more of the money paid for goods or services, or to make them less costly to a customer.

Transparency

Each crypto transaction is recorded on the blockchain.  That blockchain record is immutable and remains permanent for all parties to keep track of.  The sender and the recipient can independently confirm that the payment has been made and received.

Access to New Markets

Some countries and markets are underserved for some industries because their governments don’t allow certain services or businesses to operate under their jurisdiction. Crypto transfers don’t fall under those jurisdictions, and they enable customers and clients to access businesses and services they wouldn’t otherwise be able to.  For instance, some countries don’t allow sports betting wagers made with fiat money, but those services are available when using crypto.

 Smart Contracts

Smart contracts can be used to automate and program payments.  For instance, businesses can set up the payments so that they are confirmed once the goods or services are finally delivered or when a certain milestone is met.  It saves time and reduces administrative efforts.

Real Life Examples

The best crypto gambling sites were at the forefront of using crypto payments for cross-border transfers.  That’s because crypto casinos work with a global base of players, and those players are usually tech-savvy.  All of the benefits we mentioned especially apply to crypto gambling efforts and allow the players to lower their risk and better manage their gambling funds.

Those sites offer all the games, bonuses, and services typically found in casinos that use fiat money and operate under the same principles.  Using blockchain also enables fair gaming and verifiable odds.

To Sum Up

Cryptocurrency payments can be used as a payment method for businesses that have clients and customers based abroad.  In many regards, these payments are beneficial to both businesses and their clients.  The payments made with crypto are safer, faster, and less costly.

The payment method is already used in many industries, and it’s now adopted even by small businesses that are looking to expand and find a global audience.  It’s a part of a wider trend of accepting crypto as a part of traditional finance.  As more users make crypto payments, more businesses will look for ways to accommodate them.