A Growing Demand for New Payment Methods
Money plays an important role in our day-to-day life. As a medium of value exchange, it forms the basis of commerce, enabling people to exchange it for desired products and services. From the business angle, the role of money is still the same, but it expands beyond a simple exchange of currency for goods or services in scale. With increased globalization, import and export of products and services is now possible. However, each geography has its own version of currency and only when parties from different geographies recognize each other’s currency as a store of value can cross border trades happen.
The import and export of goods and services are dictated by multiple factors like ease of availability, cost, and availability of channels for its exchange against money. In today’s world, international trade is made possible by the concept of foreign exchange and the creation of globally accepted international fund transfer systems like SWIFT. These payment networks allow both individuals and companies to make fund transfers from one country to another in their respective local currency. In turn, the recipient will receive the funds in their respective region’s local currency of corresponding value settled directly into their bank accounts.
While this is a straightforward process, it seldom applies to many businesses as such transactions are generally capital intensive involving large consignments. As a result, such businesses conducting cross border transactions rely on financing options to fund their imports, as it takes time to resell or use the imports as input to manufacture and sell finished products to unlock the capital along with profits.
Making cross border transactions either directly or through the trade financing route in a traditional setting is not as simple as one desires. In fact, the traditional financial system tends to be slow and expensive in these cases, taking anywhere between a few days to months at times for the necessary approvals and disbursal of funds to take place.
However, with the introduction of cryptocurrencies and DeFi solutions in the B2B setting, it has become a lot easier to make cross-border transactions and secure trade financing.
Quick, Economical and Universal of Cross-border Payments
Cryptocurrencies have proven to be a better alternative to traditional financial systems, especially when it comes to cross border transactions. Crypto transactions can be executed and settled within minutes irrespective of the recipient's location. Businesses looking to make cross border transactions can make use of ShuttleOne's ShuttleSwap fiat-crypto on/off ramp payment and remittance solution to execute fiat transfers at the speed and cost of crypto transactions.
By linking their bank account to ShuttleSwap, users can easily fund their accounts and send funds to the intended recipient. Unbeknownst to the user, the protocol converts the funds to stablecoins and executes the transfer to the intended recipient, who will receive the settlement as fiat, directly into the bank accounts. Thanks to the multichain infrastructure working in the background, the transactions are processed in no time, at a fraction of the cost otherwise incurred over a conventional channel.
Addressing Crypto Volatility for Cross Border Transactions
The price volatility of crypto assets is a huge concern for businesses while making fund transfers. If the value of the asset falls, the recipient will inadvertently face losses in the transaction. It is a widely acknowledged problem which is also responsible for slower adoption of cryptocurrencies among the masses. To execute efficient cross border B2B transactions with crypto assets, the issue of volatility needs to be addressed first.
ShuttleOne has overcome this problem through extensive adoption of stablecoins. Once the funds are received, they are kept in stablecoins to shield away from volatility. A payment order once executed will convert the fund to fiat currency and directly to the designated bank account.
80 Countries, 26 Protocols and Counting
The ShuttleSwap fiat- crypto payment solution supports any SWIFT, ACH, SEPA bank accounts in over 80 countries, accepting crypto conversion within 26+ supporting protocols.
ShuttleSwap, along with other Metachain tools offer simple, low-risk cross-border fund transfer and trade financing solutions that enable businesses to conduct overseas trade in no time while incurring nominal cost overheads.
Connect with us