Changing The Payment Game
Every day, we see another traditional financial institution scrambling to figure out its crypto strategy and which cryptocurrency to buy, and it is clear why. Crypto has reached the tipping point into the general knowledge of the public and use cases such as cross-border payments have progressed far beyond the sandbox stage. Have you ever had difficulty transferring money to friends or relatives in another country? If you answered yes, you are aware of the challenges and expenses of making international payments! Once blockchain and cryptocurrencies were in place, international transactions became straightforward. Users can now transmit money in a couple of seconds because of this.
Crossing New Borders
It has taken a few years for crypto to make a substantial difference in this multi-trillion dollar-a-year market that money-transfer firms and huge banks have had a stranglehold on for as long as we can remember. Individual transaction fees from cross-border transfers, for example, account for the great bulk of Western Union’s earnings. For obvious reasons, cross-border payments were one of the first crypto use cases. In terms of quality, public blockchains and their native cryptocurrencies are built to be safe, censorship-resistant, inexpensive to transact with (depending on the token), and the most attractive part about crypto cross-border payments is that they can settle transactions quickly 24 hours a day, 7 days a week, 365 days a year. With Altalix, you can buy Bitcoin, Litecoin, and Ethereum straight to your wallet quickly and with no hidden fees, which can be used to do all your international transactions in the future.
Different currency rates are involved in international transactions between two nations. Exchange rates may fluctuate throughout the transaction owing to variations in the dollar price. With cryptocurrencies, though, this is never an issue. Because cryptocurrencies are frequently issued at a high rate, volatility is no longer an issue. They can process transactions in a matter of seconds with more security and transparency. Furthermore, data is confined to a sole source in typical payment operations. Blockchain-based transactions, on the other hand, are frequently decentralized. The data is kept in several systems and exchanged throughout the network and will be safe and protected from criminal attacks.
When statistics on the benefits of utilizing crypto for foreign payments are released, it should set off warning bells for all money-transfer organizations that generate a substantial portion of their revenue from fiat transaction fees. It is no longer just about the characteristics of blockchain and cryptocurrency that make them suitable for this use case; global liquidity must also be able to sustain these payments at scale. As more choices become accessible to customers, conventional businesses will be forced to cut transaction costs to maintain market share, which will help to offset some of the problems.
To all those who have previously used PayPal to conduct cross-border payments, why utilize them when crypto is cheaper, quicker, and just as secure?
The Future of Transactions
Companies must modify their business models, which rely primarily on transaction fees now or risk becoming outdated. While some are moving in the opposite direction, as previously stated, it is becoming more cost-effective to use crypto transactions, especially since PayPal has already increased its transaction fees for cross-border merchant payments in Europe, and Western Union is expanding its digital payment offerings to keep up with competitors. The proverbial tidal wave is already breaking. Other services they offer will not rescue them either. Many crypto firms have already implemented comprehensive anti-money laundering and know-your-customer systems.
Today, the cryptocurrency graph has a market capitalization of more than $2 trillion. Think about what it may be worth when it reaches $10 trillion or $20 trillion. This is when you will not need a cryptocurrency converter to see the benefits of international transactions processed through the blockchain. The game is shifting because of cryptocurrency liquidity. We have moved on from the “if” stage of the crypto takeover to the “when.” It is only a matter of time before cryptocurrency becomes the new norm!