How to Use Crypto For Cross Border Remittances For Free
In today's fast-paced digital economy, there is a growing demand for efficient solutions to facilitate cross-border payments. Traditional international remittances systems often suggest limitations and high costs, including heavy fees, bank regulations, and long processing times, which can cause significant challenges for medium and small-sized businesses.
Fortunately, cryptocurrency poses as a viable alternative, offering a secure, efficient, and cost-effective option for international money transfers. Let's explore the advantages of using cryptocurrency for cross-border payments, particularly how it can benefit businesses by enabling faster and streamlined transactions.
When it comes to international money transfers, cryptocurrencies like Bitcoin, Ethereum, Litecoin, or Doge provide some of the most cost-effective solutions for sending assets across borders.
Can You Use Crypto for International Payments?
Cryptocurrencies have an inherent borderless nature, which means they are not subject to geographical restrictions like fiat currencies. This characteristic allows for direct money transfers to anyone, making it convenient for peer-to-peer (P2P) transactions. Consequently, you can effortlessly send cryptocurrency to individuals in different countries, whether they are clients, employees and others.
Moreover, the use of cryptocurrency for cross-border payments extends beyond P2P transfers and benefits both business-to-business (B2B) and business-to-consumer (B2C) transactions. Approximately 58% of multinational companies utilize at least one cryptocurrency for their payment needs. Additionally, cryptocurrency researches predict that the value of cross-border crypto payments for B2B transfers could exceed $4.4 trillion by the end of 2024.
These figures indicate that businesses are embracing blockchain technology and cryptocurrencies for international payments. By adopting cryptocurrency payments in your own business, you can alleviate the inefficiencies commonly associated with traditional payment systems.
Traditional against cryptocurrency money transfers
When it comes to sending money overseas using traditional methods, you typically have to rely on a Money Transfer Operator (MTO) like Western Union or arrange a direct transfer from your checking account. Both banks and MTOs usually impose fees for international money transfers and also profit from the exchange rate conversion between different currencies.
Not surprisingly, this conventional approach can be quite expensive. In the third quarter of 2022, the average global cost of sending money abroad stood at 6.27%. For a payment of just $200, that amounts to over $12 in transfer fees!
When sending money from the sender's country to the recipient abroad, the sender often faces transaction fees, currency exchange rate losses, and fees based on the speed of the transfer. This process can take anywhere from under an hour to over six days.
In contrast, international cryptocurrency transfers provide a compelling option. With cryptocurrencies like Bitcoin, you can send digital currencies directly to the recipient's wallet through a peer-to-peer cryptocurrency exchange or by utilizing their wallet. Once the funds are in their wallet, the recipient has the choice to hold the cryptocurrency or convert it into local currencies using an exchange.
Integrating a cryptocurrency payment gateway can be a game-changer for medium or small-sized business owners, offering several compelling reasons to accept crypto internationally almost for free. One of the best ways you can seamlessly send crypto and create your own business invoices is Plisio crypto payment gateway. There is no code knowledge needed, but a wide range of useful tools that come with this business oriented platform services. On Plisio, you save up to 80% on fees and can manage your business routine as easily as you would want it.
Cryptocurrencies have gained popularity for international money transfers due to several reasons, including:
Lower Transaction Fees: Digital assets offer a cost-effective solution for cross-border payments. Traditional payment systems involve intermediaries that increase transfer costs. Cryptocurrency transfers without intermediaries can significantly reduce overall transfer costs. Cryptocurrency researchers state that crypto can lower cross-border payment prices by 40% to 80%. Cryptocurrency payment gateways like Plisio charge 0.5% in fees, providing a cost-effective option for everyday needs.
Direct Transactions: One of the primary challenges of traditional payment methods is the involvement of multiple intermediaries. Systems like SWIFT are used for international payments, creating a lack of directness and automation. Cryptocurrency addresses this issue by enabling direct peer-to-peer transfers between wallets, eliminating middlemen. This streamlined process reduces transaction delays, making it a convenient option for multinational firms engaging in B2B transfers.
Enhanced Transparency: Cryptocurrency transactions are recorded on a blockchain, a decentralized and transparent system. This distributed ledger technology ensures a clear record of each transaction, increasing transparency for both parties involved. It also offers regulatory benefits, as authorities can monitor transfers to prevent illegal activities. Additionally, blockchain can streamline financial systems, aiding authorities in taxation processes.
Instant Transfers: Traditional bank transfers can take several business days, causing delays and cash flow challenges. Cryptocurrency addresses this issue by enabling near-instant payments. By eliminating intermediaries, crypto transactions provide a direct path between sender and receiver, eliminating the need to wait for bank operating hours or third-party delays.
Simplified Currency Handling: Cryptocurrencies eliminate the complexity of currency conversions when conducting international transactions. With fiat currencies, fluctuations in exchange rates and multiple payment channels can be a concern. However, when using cryptocurrencies, such as Bitcoin or Ethereum, for international transfers, the need for conversions is eliminated. Whether sending Bitcoin from Germany to Thailand or any other country, it remains a sent cryptocurrency throughout the transaction. This saves users from extra currency conversion fees often charged by banks.
How to send money from Plisio Wallet
To send cryptocurrency through the free crypto wallet of the Plisio cryptocurrency payment gateway, follow the following steps:
1. Sign Up and Create an Account: Visit the Plisio cryptocurrency payment gateway website and sign up for a free account. Provide the necessary information and complete the registration process.
2. Set Up Your Wallet: Once your account is created, navigate to the wallet section within the Plisio payment gateway. Here, you can set up your free crypto wallet by following the provided instructions. This wallet will serve as your storage and transaction tool for cryptocurrencies and creating of which is completely free of charge.
3. Choose the Cryptocurrency: Determine which cryptocurrency you want to send. Plisio's payment gateway supports various cryptocurrencies, so select the one you wish to transfer. Common options include Bitcoin (BTC), Ethereum (ETH), or Litecoin (LTC).
4. Enter Recipient's Wallet Address: Obtain the recipient's wallet address, which is a unique alphanumeric code associated with their crypto wallet. Double-check the address to ensure accuracy, as mistakes in entering the address can result in the loss of funds.
5. Specify the Amount: Enter the amount of cryptocurrency you wish to send to the recipient. Make sure to review the transaction details carefully before proceeding.
6. Confirm the Transaction: Once you have entered the recipient's wallet address and specified the amount, review the transaction details once again to ensure accuracy. Confirm the transaction to initiate the transfer.
7. Transaction Verification: Depending on the blockchain network used by the selected cryptocurrency, the transaction may require verification. This process ensures the security and integrity of the transfer. The time required for verification can vary based on network congestion and other factors.
8. Monitor Transaction Status: Keep an eye on the transaction status within your Plisio payment gateway account. You may receive notifications or updates on the progress of your transfer.
9. Transaction Completion: Once the transaction is confirmed and verified, the cryptocurrency will be sent from your wallet to the recipient's wallet. This process typically involves deducting the specified amount from your wallet balance and adding it to the recipient's balance.
10. Verify the Transfer: After the transaction is completed, you can verify the transfer by checking the recipient's wallet address or by consulting the transaction history within your Plisio payment gateway account.
Please note that Plisio also offers you:
- Zen Cart
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