How do crypto cross-border payments work?
These transactions are completed using the blockchain which eliminates the need for banks, who often slow payments down significantly.
For example, if you are in the United Kingdom but want to send funds to America. The first step would be converting fiat currency into a digital asset of your choice. Here at Vertex Market you can buy Bitcoin, Bitcoin Cash, Litecoin, Ethereum, USD Tether and USD Coin. USDT and USDC are stablecoins; a stablecoin is a fixed-price cryptocurrency whose market value is attached to another stable asset.
Purchases of these digital currencies can be made using Bank Transfers, Credit/Debit Card, Skrill, Revolut, SEPA, PayPal, TransferWise, Google Pay and many more quick and easy payment methods.
Vertex.Market supports many different payment methods within many different countries, which makes the on ramp from Fiat to Crypto so much easier for many people.
Cryptocurrency can be held in a secure wallet. When it is time to make a transfer to whoever you may be transacting with, they can give you the address for their wallet which is similar to the account number you’d get at a bank. These addresses can contain dozens of characters, so copying them carefully is crucial, one mistake and that address is no longer valid to the recipient you are sending to.
Once funds have arrived in an account, the user has several choices. They can either convert the crypto to fiat, again, by selling on Vertex.Market and receiving the fiat from the sold crypto in whichever payment method they select. Or they could sell it on Vertex for a less volatile digital asset such as a stablecoin. Vertex allows you to buy and sell Crypto using Crypto as a payment method as well.
What advantages does Crypto offer over Fiat?
- It is cheaper and faster than using bank accounts.
- There is a lot of enthusiasm surrounding the fact that crypto could transform cross-border payments as we know it which would make remittances, where people in foreign countries send funds to family or friends back home, a lot less expensive.
- Currently, from research, we can roughly estimate that remittances sent through fiat channels result in average fees of 6.75%. For someone on a modest income, this can take a substantial chunk out of their earnings.
- According to figures from Deloitte, Blockchain has the potential to reduce transaction costs by 40% to 80%.
- Currently, it can take three to five business days for funds to clear through old-fashioned wire networks which is not ideal. But on certain blockchains, it is possible for payments to be confirmed in seconds.
One crucial benefit that cryptocurrencies can offer is unlocking access to financial services for the unbanked. Research suggests that 80% of consumers in sub-Saharan Africa fall into this category and worldwide, a total of 1.7 billion people do not have a bank account. There can be a multitude of reasons for this. Financial institutions may not operate in their geographic locations, these services could be too expensive, or consumers may have a lack of trust.
How much money is sent around the world using crypto?
Digital assets have a decent market share of overall cross-border payments, but the demand is growing, and so at a rapid pace.
According to research, international digital remittances are set to surge to $525 billion by 2024, that is a 102% increase from where they were in 2019.
“Utilizing a blockchain-powered network, operators can offer their users a much faster, cheaper and more transparent service,” says Juniper Research.
It is a fast-moving industry, and it is quite difficult to put an exact number on the volumes of cross-border payments made using crypto. However, figures from research showed that 15% of those who made remittances from the U.S. in 2017 used a digital asset such as Bitcoin making it more popular than prepaid cards, checks and cash.
This is huge growth that is happening in the Crypto World, and here at Vertex, we are happy that we can contribute to this worldwide growth by supporting buyers and seller who wish to transact with one another on a P2P level.
How can you easily and securely exchange cryptocurrencies?
By using a platform like Vertex that has a carefully refined process where buying and selling digital assets are safe.
The platform is aiming to level the playing field by offering zero deposit trades, as well as competitive fees for all transactions. Also offering insurance on wallet’s and trades, which you are able to take out on the platform for a minimal fee. All this coupled with an easy-to-use platform and 24/7 support for users around the world.
Our number one priority is to make your P2P experience easy and safe.
You can sign up here: Vertex Market — Sign Up
Once on the website, on the bottom right hand side you will see an orange box — click that to enter support, where one of our support staff will be able to answer any questions you may have.