Cross-border payments and international payments

Cross-border payments and international payments have come a long way in recent years, increasingly tapping into new technologies that promise greater convenience, security, and reduced costs.

In this article, we'll explore the growing landscape of cross-border payment and international payment options and the evolving role that cryptocurrencies may play in the future of sending money internationally. Let’s continue with the basics!

What is a cross-border payment?

A cross-border payment refers to the transfer of funds from an individual or business in one country to a recipient in another country.

An international payment is more broadly defined as any payment that crosses international borders, whether between merchants, consumers, banks, or other financial institutions.

Some key indicators show the scale of global cross-border activity: in Estonia, for example, cross-border payments accounted for 14% of all card volumes in 2020.

By 2030, cross-border payments are projected to reach a total value of $35 trillion, with business-to-business transactions continuing to dominate as the largest segment.

What are the advantages of cross-border transactions?

There are several advantages that make cross-border payments appealing compared to other transactions. International trade naturally creates a demand for convenient cross-border payment solutions.

Speed, transparency, and lower costs are chief among the advantages. A stable euro coin like EURK offers transparent transactions that are fast and secure for cross-border transactions with its stable value.

Using decentralized finance networks instead of correspondent banking can significantly reduce main challenges of cross-border payments, such as costs and processing times for senders and recipients.

EURK is a secure and reliable stablecoin that has reserves in Switzerland and the Dominican Republic that you can trust for your cross-border transactions.

What is an example of a cross-border payment?

A very common example of cross-border payment is a consumer purchasing a product online from an overseas merchant and paying for it using their debit or credit card. If needed, currency exchange takes place as the payment is processed across multiple financial networks.

Typically, it takes 1–5 business days for the funds to be deposited into the merchant's foreign bank account. Another example is when an importer uses a wire transfer service to send funds to an exporter in another country to pay for shipped goods.

EURK empowers innovation with reliability and efficiency as a secure, audited, and 1:1 euro based stablecoin built on multiple blockchains. You can easily make secure and fast cross-border payments with EURK thanks to the power of blockchain technology.

What is the meaning of international payments?

International payments refer more broadly to any monetary transaction involving a cross-border element. This includes transfers between individuals, businesses, banks, central banks, and other financial entities across national borders.

It involves converting one currency to another if needed and using correspondent banking relationships and global payment networks to process the fund transfer globally.

The total value of international payments amounts to tens of trillions of U.S. dollars annually when including wholesale transactions between large financial counterparties.

Consumers commonly use international payments for investing in overseas markets, making cross-border e-commerce payments, and exchanging foreign currency for travel.

What are the payment methods for international payments?

Traditional methods for processing international payments include wire transfers, correspondent banking, debit and credit cards, and mobile money apps.

• Wire transfers allow securely sending funds internationally via the SWIFT network but are often slow and expensive for individuals.
• Correspondent banking relies on relationships between large banks to transfer value between countries via their own nostro and vostro accounts.
• Debit and credit cards work well for online purchases from merchants with global card acceptance. However, currency conversion fees may apply.
• Popular mobile money apps have significantly lowered costs for individual cross-border transfers using local currency accounts.

Emerging fintech solutions are challenging these legacy systems. Cryptocurrency advocates believe digital assets present a promising new rail for global value transfer thanks to their censorship resistance, security, and lack of geographic limitations.

Stablecoins offer a way to leverage blockchain for fast and affordable value transfers between traditional fiat currencies as well as for cross-border payments and international payments.

As a type of cryptocurrency, stablecoins such as EURK have the potential to streamline many tedious and expensive international payment processes that are still reliant on old networks and infrastructure.

The power of stablecoins comes from their ability to bring the best of cryptocurrencies and fiat currencies together. By doing this, they provide stability of stablecoin, transparency for stablecoin, and stablecoin liquidity. All these features make them suitable for crypto payments internationally.

What is the difference between cross-border payments and international payments?

The main difference between cross-border payments and international payments lies in their scope. Cross-border payments refer specifically to monetary transfers that cross international boundaries, while international payments encapsulate a broader range of financial flows with a global dimension.

These include transactions between banks, central banks, and other large institutions, in addition to cross-country consumer and commercial payments.

Another key variance is that cross-border transfers typically involve currency exchange given differing domestic currencies, whereas international payments can occur within the same currency zone in some cases without currency conversion taking place.

In practice, people often use the terms interchangeably to refer to financial flows that cross national borders. However, they differ in scope, as we have explored.

Which one is better for crypto payments?

Crypto provides compelling benefits for both cross-border and international payments by eliminating the need for multiple intermediaries and accelerating settlement. Transferring value between digital crypto wallets anywhere in the world can take just a few minutes, versus days with traditional options.

Stablecoins, in particular, have seen rising use for international transfers due to their price stability. Some research forecasts that cross-border payments will nearly double in value to $190 trillion globally by 2030.

As more stablecoins like EURK offer transparent and reliable bridges between fiat currencies, we can expect cryptocurrencies to increasingly disrupt conventional remittances and B2B payment corridors worldwide.

This stability gives EURK advantages over other crypto assets for securely powering cross-border and international payments into the future. The added benefit of transparency in the blockchain public ledger also builds important trust for senders and recipients.

While crypto innovation continues to evolve at a rapid pace, a stablecoin like EURK provides a bridge to the traditional financial system by maintaining 1:1 backing with reserves in regulated Swiss and Dominican banks, making funds redeemable as regulated fiat currency.

The bottom line

Cross-border payments and international payments are vital for global trade but still inaccessible to billions. Emerging technologies hold immense potential if built with principles of transparency, compliance, and trust.

Stablecoins offer that balance by combining blockchain benefits with price stability assurance—a promising development for financial inclusion worldwide. With continued responsible growth, solutions like EURK could transform money movement and connect communities across borders like never before.

If you want to explore the benefits of EURK for secure cross-border payments and international payments, you can become a partner or buy EURK directly on secure crypto exchanges such as Bitay and Coinstore.

You can also buy EURK from trusted partners like Bank of Central, The Kingdom Bank, The Guardian Bank, and Speedy. The whole payment system is changing with the innovations in blockchain technology, especially with euro stablecoins such as EURK. Start your stablecoin journey today!