Borderless payments across regions have never been easier with cryptocurrencies. As a result of its decentralized nature, cryptocurrencies are highly effective in overcoming legal barriers often associated with cross-border transactions. Traditional remittance methods are centralized, with acceptability varying across regions. They are also constrained by high transaction fees, regulatory requirements from banks, and long processing times.
Cryptocurrency provides a cost-effective, secure and efficient alternative for businesses and individuals to make swift payments across borders. Particularly in developing countries where traditional payment systems may have limitations, cryptocurrency shines as a game-changer, facilitating seamless cross-border payments.
There are already numerous crypto gateway platforms enabling cross-border remittance across the globe, a good example is PTPShopy, which allows users to make payments with over 400 cryptocurrencies including Bitcoin and Ethereum.
How Does Crypto Transactions Work For Cross-Border Payments?
Let’s explain the process with an example. Alice, a customer, wants to transfer cryptocurrency to Bob, her merchant. Here’s how the transaction takes place:
Both parties start by accessing their cryptocurrency wallets. Bob shares his public wallet address with Alice. She fills out the necessary details, such as the destination address and the amount of cryptocurrency to send. She then clicks send to transfer the cryptocurrency to Bob.
Unlike traditional methods that may require processing for days, cryptocurrency transactions are processed within seconds or minutes once the sender approves and initiates the transfer.
On the backend, the cryptocurrency wallet does not hold your coins, rather it safeguards your private keys from theft. During a transaction, the wallet creates a digital signature that confirms your identity. It also sends your transaction information to a global network of blockchain computers, where validators verify its accuracy. This prevents fraud and checks your balance to confirm that you have enough funds to complete the transaction.
What are the Benefits of using Crypto for Cross-Border Payments?
Cryptocurrencies are a viable option for cross-border payments because of the following reasons.
Lower transaction fees: Cryptocurrencies often have significantly lower transaction fees compared to traditional banking or money transfer services. For businesses, this means cost savings on each transaction, potentially leading to higher profit margins or more competitive pricing for goods and services. Individuals benefit by being able to send money abroad without losing a significant portion of it to fees, making remittances more affordable and efficient.
Swift payments: Crypto transactions can be executed much faster than traditional bank transfers, which might take several days to complete, particularly across borders. For businesses, this implies speedier access to funds, greater cash flow, and shorter settlement times for foreign transactions. Individuals can enjoy near-instantaneous fund transfers, which is very useful in urgent situations or when dealing with time-sensitive payments.
Wider reach: Transactions occur on a global scale without being tied to specific countries or banking systems. This opens up opportunities for businesses to reach new markets and customers globally without the need for establishing complex banking relationships or dealing with currency conversion issues. Individuals benefit from increased accessibility to financial services, especially in regions with limited banking infrastructure or where traditional banking services are prohibitively expensive.
Increased transparency: The blockchain, which is the underlying technology for cryptocurrencies provides a high level of transparency and immutability. Every transaction is recorded on a public ledger, which anybody may audit and verify. Businesses can benefit from increased trust and accountability in financial transactions, lowering the risk of fraud or disputes. Individuals can also benefit from increased transparency by knowing that their transactions are secure and tamper-proof, which can boost trust in adopting cryptocurrencies for cross-border payments.
How to use PTPShopy for Cross-Border Payments
For businesses looking to make international crypto payments, PTPShopy offers an effective wallet feature for this. To send cryptocurrency through the PTPShopy wallet module, follow the steps below:
Signup
Visit PTPShopy and sign up as a merchant. Follow the instructions to complete the process.
Wallet Setup
After signing up, you will be redirected to the wallet page where you will find a list of cryptocurrencies.
Choose the Cryptocurrency
Determine which cryptocurrency you want to send. PTPShopy provides over 400 cryptocurrency options to choose from. Ensure to select a cryptocurrency that has been funded with the amount you wish to send.
Enter Recipient Address
Obtain the recipient’s wallet address, which is a unique alphanumeric code linked to their cryptocurrency wallet. Double-check the address to guarantee accuracy, as incorrectly inputting the address can result in a loss of cash.
Input the Amount
Enter the amount you want to send to the recipient.
Confirm Transaction Details
Confirm details of the transaction like the recipient address and the amount.
Transfer Successful
Click the ‘send’ button to complete the transaction process. The money should be received by the recipient within a few seconds.
Why Should I Choose PTPShopy As A Merchant For International Payments?
Over 30% of business owners in the United States offer their client base the opportunity to pay with crypto. This diversification has expanded many businesses as clients can now cater to new and existing clients across the borders.
As a business looking to pay freelancers or employees with crypto, PTPShopy is a valuable option. It charges as little as 0.99% on every transaction, which is a lot less than what traditional financial platforms charge.
Recipients are also assured of fast payment processing as they can now receive money within seconds, rather than waiting for hours or days.
PTPShopy supports over 400 cryptocurrencies and withdrawal is seamless. If you encounter any issues, the PTPShopy support is always available to guide you.