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Millions of businesses around the world contribute to the nearly $2 trillion in cross-border payments each year. The most common method for US businesses to move funds across borders is SWIFT, which takes a considerable amount of both time and money. Introduced in 2015, Stellar is an open network for moving value internationally with standard instructions, a more modern and transparent way to make B2B payments. Like SWIFT, only, digital, modern, fast - and open to all.
Whether paying remote staff, getting paid by customers, or sending money to key suppliers, there’s a cost when transacting between different currencies. Convoluted pathways for both B2B and B2E/B2C payments use multiple banks and institutions that are slow to initiate transactions and dictate high exchange rates and fees. Stellar replaces the process of the international wire and currency conversion in a single pathway, making transactions fast and efficient.
In most B2B transactions, the service provider decides how they want to be paid. Typically, this is a bank-to-bank protocol, where the customer will have to work with their own bank to make the payment, and the correspondent bank in between will change the currency, decide the foreign exchange rate and charge their fees.
The typical time to settle is 2-5 business days, depending on the banks and countries involved and the fees can be as high as 6%.
Using Stellar for cross-border payments solves the time and money issues that come with traditional B2B payment methods.
Perform the same transaction in minutes for a fraction of a penny, and forget about the high exchange rates and banking fees for good.
In most B2E or B2C transactions, the paying business or marketplace decides how the payment happens. Employers will generally use an international payroll service (like FMP, Velocity, or Deel) to handle compliance with local tax and employment regulation. Marketplaces will decide both sides, they’ll accept certain payment methods from customers, and also have workers/service
With these amounts typically being smaller and more time sensitive, Stellar allows for fast and efficient transactions.
Perform the same transaction in minutes for a fraction of a penny, making sure your employees or customers are never left waiting.
Stellar combines the power of a frictionless, blockchain-based pathway for payments, with local partners to provide on/and off ramps to the world’s currencies. These partners, called Anchors, move value on the Stellar network, while accepting and paying out traditional currency in their local geography.
Both the service provider and the buyer can transact in their own, local currency, without the need for an intermediary bank. In essence, Stellar replaces the process of the international wire and currency conversion in a single pathway.
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