If you own a business, you’ll know just how important it is to keep costs as low as possible. After all, the lower your outgoings, the higher your profits, so chances are you’ll be looking for any way you can save money.
If you deal with overseas suppliers, you may have to make international payments from time to time. The trouble with this is that regardless of whether you use your debit card, bank transfers or payment platforms such as PayPal, you’ll be forking out quite a bit extra for international fees.
In fact, most banks typically charge a commission on currency exchange and may also charge a service fee.
If you’re making frequent international payments, over the course of a year these can start to seriously add up, eating into your profits with every overseas payment you make.
In this blog, we’ll discuss how crypto cards can help you avoid being stung each time you pay for goods internationally. We’ll also point out some additional benefits that are making these cards increasingly popular with business owners and their customers.
Crypto Cards For International Payments
So international payments can often come with a hefty price tag, thanks to intermediary banks and their assortment of fees. This is where crypto cards can help you make some significant savings.
Using the power of blockchain technology, crypto cards enable direct peer-to-peer transactions, eliminating the need to involve multiple banks which all take a l; little piece of the pie along the way.
The result is your business making considerable savings, as transaction fees are significantly reduced.
Reduced Waiting Time
Another drawback that comes with making traditional international payments through your bank is the time it can take for them to clear.
In business, time is of the essence, especially if you’re dealing in fast-moving consumer goods. So the delays you could potentially experience could lead to supply issues.
Crypto cards offer a timely solution to this long-standing problem. While traditional bank transfers may take several days, crypto transactions usually occur in a matter of minutes or even seconds.
This ensures quick, hassle-free payments, ensuring your suppliers are paid off there and then, meaning they can box and send off your goods the very same day rather than waiting around for transactions to clear.
Fluctuating Prices
One concern some business owners may have is the potential volatility of crypto and the fluctuating exchange rates. In truth, this would all depend on the current crypto landscape. While some cryptos do tend to rise and fall quite rapidly, others may be more stable.
If stability is important then you may wish to invest in some of the more stable cryptocurrencies, such as the USDC or USD Coin. This is a type of stablecoin pegged to the value of the United States Dollar which provides the stability of traditional fiat currencies while at the same time harnessing the efficiency of blockchain technology.
By opting for this crypto, you can still take advantage of the benefits of crypto cards while protecting yourself from the peaks and troughs of some cryptocurrencies.
Alternatively, if volatility isn’t so much of a concern, you could actually use this to your advantage by buying while the price is high which could see you get your goods for a great price. In the end, this will depend on how urgently you need to make your payments.
Embracing The Future
At the moment there are approximately 795k businesses around the world accepting crypto, and that number is only set to grow following Bitcoin’s exchange traded fund approval. We anticipate that over the next decade or so, millions of companies will be accepting crypto payment for business.
The Securities and Exchange Commission’s approval will bring in many more investors and crypto holders over the next few years, meaning the number of businesses accepting crypto as payment will increase.
Moreover, with crypto now receiving widespread acceptance, it’s clear that the adoption of these cards is not just a trend but a forward-thinking strategy for business owners.
By embracing the decentralisation and efficiency that crypto and the blockchain technology offers, businesses can revolutionise the way they handle international payments, leading to savings and potentially gaining an advantage over competitors.