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Traditional cross border remittance can be inconvenient due to exorbitant exchange rates, numerous intermediaries, and a generally time-consuming process. Relying on multiple middlemen means that each party takes a cut, making the process not only expensive but also unnecessarily prolonged.
Crypto remittance reduces the need for intermediaries by operating on decentralized networks, making it cheaper, faster, and safer to send and receive international payments.
Cross Border Payment Solutions: Now Cheaper and Faster
In addition to being slow and expensive, traditional cross-border remittance methods come with a few other challenges for users.
Traditional banking systems involve multiple intermediaries, which often makes it difficult for senders and receivers to track their payments in real-time. Such issues can be especially inconvenient for businesses operating internationally, where payment uncertainties can lead to major mishaps.
Additionally, managing regulatory compliance across borders is complicated by the different regulations, financial authorities, and compliance requirements in each country. This complexity adds to the cost and slows down payment processing, as each country has its own limitations and guidelines for moving money.
Moreover, varying banking infrastructures can make payment processing tricky. For instance, sending payments to relatively unbanked regions may be more challenging due to underdeveloped infrastructure. Communication gaps or obstacles between different banking systems can cause delays and make it difficult for financial institutions to access global financial systems.
How Does Crypto Cross Border Remittance Work?
Compared to SWIFT, the most popular method of cross-border payment solutions, crypto remittances are faster and cheaper, making them a more practical method for sending and receiving international payments in underbanked regions.
The process of crypto remittance is straightforward:
- The sender converts their fiat currency into the cryptocurrency of their choice through a crypto exchange app.
- The sender then transfers the crypto assets to the recipient’s crypto wallet.
- The recipient can either cash out the cryptocurrency into their local fiat currency or, if available, spend it directly with their crypto debit card.
This allows users to send money abroad without losing a minimum of 3%-5% on fees or waiting several business days for the transaction to be completed.
Because crypto operates on a decentralized network, no additional entities are controlling the transactions, which minimizes operational costs and reduces fees. This decentralization also makes crypto payment processing quick – transactions take only a few minutes, as opposed to several days.
Building a Crypto-Friendly Future with Cross Border Remittance APIs
Beyond being a faster and cheaper solution, crypto remittances offer secure transfers that are less susceptible to fraud, helping to build trust and confidence among users.
The only way to make crypto payments mainstream is by solving real-world problems faced by users. For this to happen, crypto must be both accessible and easy to adopt.
Striga makes it possible for fintechs, neobanks, and crypto platforms to build and launch payment platforms using simplified APIs that handle the heavy lifting. With solutions like crypto on-ramp, fiat off-ramp, exchange wallets, and crypto cards, Striga provides the complete package.
As a licensed entity, Striga’s crypto banking platform is perfectly positioned to navigate the evolving regulatory landscape in the EU.
Discover your crypto solutions and launch with Striga today.
Striga Crypto-native Banking as a Service:
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How Cross Border Remittance Can Benefit From Crypto Banking
