Unlocking the Potential: How Cryptocurrency Revolutionizes Cross-Border Payments

As the world goes digital, businesses are increasingly seeking efficient cross-border payment solutions in order to meet the demands of today’s dynamic digital economy. Where everyone once used traditional payments systems for the transfer of money across borders, they now fall short with their limitations, high costs, intricate regulations, and time-consuming processes, posing considerable obstacles.

Thankfully, the emergence of cryptocurrency provides a promising solution. With its efficient, reliable, and cost-effective nature, cryptocurrency offers a compelling alternative for international money transfers. Let’s take a look at the advantages it brings to cross-border payments, revolutionizing transactional processes and empowering businesses in the modern landscape.

Traditional payments systems now fall short with their limitations, high costs, intricate regulations, and time-consuming processes, posing considerable obstacles for borderless transactions.
Cryptocurrency enables direct money transfers to anyone, making it convenient for peer-to-peer (P2P) transactions.
Statistics reveal that established use cases like remittances have contributed to a remarkable 350% surge in crypto payment users within the United States over the past three years.
According to market insights revealed by Statista, transaction value in the Digital Remittances market is projected to reach US$135.20bn in 2023, and in the Digital Remittances market, the number of users is expected to amount to 18.56m users by 2027.
Some of the advantages that cryptocurrency for cross-border payments provide include speed, cost-efficiency, accessibility, transparency, no intermediaries, and much more.
As cryptocurrency is becoming a norm for borderless transactions and a means of day-to-day payments, LYO Ecosystem enters the scene as users demand easy-to-use, crypto-friendly platforms.

Cryptocurrency as a Pave Way for Cross-Border Payments

Cryptocurrencies are inherently borderless, meaning they are not limited by geographical boundaries like fiat currencies. Cryptocurrency enables direct money transfers, making it convenient for peer-to-peer (P2P) transactions.

In a way, we can say that cryptocurrency keeps you close with your loved ones as you can easily send crypto to individuals in different countries, whether they are friends, family members, colleagues, or others.

Although crypto payments currently account for a relatively small portion of overall transactions, their usage is rapidly expanding. Statistics reveal that established use cases like remittances have contributed to a remarkable 350% surge in crypto payment users within the United States over the past three years. Notably, prominent infrastructure providers such as Stripe, Worldpay, and Checkout.com have embraced stablecoin payment settlements.

According to market insights revealed by Statista, transaction value in the Digital Remittances market is projected to reach US$135.20bn in 2023, and in the Digital Remittances market, the number of users is expected to amount to 18.56m users by 2027.

Image Source: Statista Market Insights

More statistics include:

Digital cross-border remittances is projected to grow from $295 billion in 2021 to $428 billion in 2025
15.8% of remitters are already using cryptocurrency for money transfer.
Crypto remittance is 388 times faster and 127 times cheaper than traditional remittance methods.

Advantages of Cryptocurrency for Cross-Border Payments

In the near future, the limitations of traditional remittance channels are expected to be overcome by the advent of blockchain remittance. As cryptocurrencies gain increasing popularity, the utilization of blockchain-based remittance platforms is anticipated to surge. Furthermore, numerous countries are actively working on developing improved regulatory frameworks for crypto transactions, thereby fostering a sense of trust and confidence among users in these platforms.

Let’s take a look at some of the advantages:

Speed: Cryptocurrency transactions are generally faster than traditional cross-border payment systems. They operate on decentralized networks, enabling near-instantaneous transfer of funds without the need for intermediaries or delays associated with traditional banking processes.
Cost-efficiency: Cryptocurrency transactions can be more cost-effective than traditional cross-border payments. Traditional methods often involve various fees, including currency conversion fees, transaction fees, and intermediary fees. Cryptocurrencies can significantly reduce or eliminate these fees, especially for large or frequent transactions.
Accessibility: Cryptocurrencies provide financial inclusion and accessibility to individuals who may not have access to traditional banking services. All that is needed is an internet connection and a cryptocurrency wallet, which can be downloaded and used on a smartphone or computer. This accessibility is particularly beneficial for people in regions with limited banking infrastructure.
Transparency: Cryptocurrencies utilize advanced cryptographic techniques for transparent transactions. The decentralized nature of cryptocurrencies and their underlying blockchain technology make them resistant to hacking and fraud. Additionally, blockchain records all transactions in a transparent and immutable manner, enhancing reliability and reducing the risk of fraudulent activities.
No intermediaries: Cryptocurrencies operate independently of traditional banking systems, enabling cross-border transactions to occur without relying on a central authority. This decentralization reduces the potential for censorship, control, or limitations on cross-border payments imposed by governments or financial institutions.
24/7 availability: Cryptocurrencies are not subject to banking hours or geographical restrictions. The cryptocurrency market operates 24/7, allowing users to send and receive funds at any time, including weekends and holidays. This constant availability facilitates faster and more convenient cross-border transactions.
Reduced settlement time: Traditional cross-border payments often involve multi-day settlement periods due to the involvement of multiple banks and intermediaries. Cryptocurrency transactions, on the other hand, settle relatively quickly, often within minutes or even seconds, thanks to the decentralized nature of blockchain networks.

LYO Ecosystem – Helping the World Go Digital

As cryptocurrency is becoming a norm for borderless transactions and a means of day-to-day payments, LYO Ecosystem enters the scene as users demand easy-to-use, crypto-friendly platforms.

LYOPAY, a crypto payments application, expands into an ecosystem of crypto services. The goal is to provide access to crypto-friendly products that make everyday cryptocurrency use for payments easier, empowering users to be part of the digital finance world.

The LYO Ecosystem allows people to use cryptocurrency with a feeling of ownership. It leverages payment solutions to drive adoption and user acquisition, while also offering trading and financial service solutions for revenue generation.

LYOPAY, the licensed and regulated company behind the ecosystem, has reached over 201,000 active users and a monthly volume of USD 500 million by December 2022.

LYOPAY App

Amongst the many products that the LYO Ecosystem encompasses, LYOPAY App, for instance, is a cryptocurrency payments application that helps users store, exchange, buy, and sell cryptocurrencies. The app serves as a bridge between fiat and cryptocurrencies, offering Euro (€) accounts with IBAN for SEPA transfers.

LYOPAY Pro

Similarly, LYOPAY Pro is a payment application within the LYO Ecosystem that helps users with cryptocurrencies and fiat money. LYOPAY Pro was developed with the purpose of providing a crypto app with integrated fiat currencies, available to multiple countries around the globe and with card service.

Other features of LYOPAY Pro include digital banking, crypto wallet, rewards, SEPA and SWIFT transfers, branded physical and virtual cards, bespoke travel and concierge services, and much more.

Explore more:

In an era where cryptocurrency is gaining mainstream acceptance and the advantages of digital transactions are being widely acknowledged, LYO Ecosystem stands at the forefront, providing its customers with unparalleled ease and convenience through its expanding ecosystem of cutting-edge crypto products.

To discover more products and to stay connected with the LYO Ecosystem, follow us: