Building Solutions for
With a Stellar-based solution for cross-border payments, you can move internationally with standard instructions, a transparent and modern way to make B2B payments. Stellar replaces the process of international wire and currency conversion, making transactions efficient and fast.
In traditional B2B transactions, the service provider determines how they want to be paid. It is a bank-to-bank protocol where the customer has to work with their bank to transfer payment and the correspondent bank converts the currency, decides the foreign exchange rate and charges the fees.
The time to settle is 2-5 business days, depending on the countries and banks involved. Also, banks charge high fees of around 6% due to the numerous intermediaries involved in the ecosystem.
Creating a solution for cross-border payments on Stellar overcomes the money and time issues because of traditional B2B payments. The platform enables financial institutes to execute the same transaction in minutes for a fraction of a penny and eliminate the high exchange rates and banking fees.
By combining the potential of a frictionless blockchain-based pathway for payments with a local partner, Stellar offers on/and off-ramps to the world’s currencies. These local partners are also defined as anchors, used to move anchors on the stellar network while paying out and accepting traditional currency in their local region.
Benefits of implementing blockchain
in cross-border payments
Blockchain removes the need for middlemen, correspondents or central authorities from the payment processing. Transactions occur between parties who have entered into a mutual agreement, ensuring trust in the ecosystem.
Reduced turnaround time
Since there are no central authorities or middlemen involved in processing payments, the turnaround time is reduced for payment settlement and money can be transferred quickly across borders.
As the details of the transaction are hashed and encrypted, it is impossible to alter the data. Modifying one block in the chain makes all other blocks invalid by changing their hash values.