Over 1.3 billion people in the world don’t have access to bank accounts, which makes it difficult for them to either send or receive international payments. Traditional Banks and SWIFT haven’t done anything to facilitate such a large portion of the grown-up population. This is where cryptocurrencies and stablecoins enter the picture.
Let’s help you understand how cryptocurrencies are making lives easier for people who want to transfer their cash instantly without draining their bank accounts. We will also explore the major cryptocurrencies that you can use to reap the most benefits from cross-border payments, while mentioning the potential cons to be aware of.
How Blockchain Cross-Border Payments Work
Blockchain has revolutionized cross-border payments by eliminating intermediaries and replacing them with a decentralized system. As blockchain is a distributed ledger (DLT) maintained by nodes (computers), each transaction is recorded in a new block, which is then linked to previous ones to form a secure chain.
While traditional systems use banks to settle payments, blockchain allows direct transfers between the sender and the receiver. This is done through its secure and ultra-fast transaction methods. These transactions are controlled by smart contracts, which are self-executing agreements with pre-defined payment terms.
With blockchain, you can do real-time transactions with instant transfers and 24/7 availability worldwide. This is different from traditional systems that operate for only 8 hours a day, 5 days a week. Blockchain transactions have no bank fees, and they charge reduced foreign exchange costs. This results in significantly lower transaction costs compared to traditional banking systems.
Every transaction in the blockchain is permanently recorded and visible to all participants, which improves transparency and auditability. In blockchain, the confirmation of transactions is done via validators and consensus.
Validators are nodes that verify transactions on a blockchain. They may be miners (Proof of Work) or stakers (Proof of Stake), depending on the blockchain they are working on. Consensus mechanisms are protocols that ensure that all nodes agree on the validity of transactions before they’re added to the ledger.
Is Crypto a Viable Alternative for Cross-Border Payments?
Cryptocurrency is rapidly becoming a viable alternative for cross-border payments. In regions where traditional banking is costly or inaccessible, crypto is gaining traction among migrant workers and families.
According to various studies, 19% of global users are interested in using cryptocurrency for remittances, with 12% agreeing that it’s a viable alternative to traditional banking. Companies are also exploring crypto for international payroll and supplier payments.
Stablecoins like USDC and USDT are especially popular for instant and low-cost settlements. They are tied to assets like the US dollar or euro, offering price stability that traditional cryptocurrencies lack. Most stablecoin transactions cost less than $1 and settle in seconds, making them ideal for micro-remittances and business payments.
However, using cryptocurrencies as an alternative for cross-border payments carries its unique set of challenges. Regulation challenges, liquidity gaps, volatility risks, and on/off-ramp access make it a difficult choice for people/businesses who want institutional security and peace of mind.
Best Cryptocurrency Options for Cross-Border Payments in 2025
With cryptocurrencies gaining traction as a primary source for cross-border payments, it is difficult to select the best ones that offer maximum speed with minimum transaction fees. As each cryptocurrency has a unique utility, we have shortlisted the 7 best ones for you to choose from.
1. Ripple (XRP)
Ripple’s XRP is one of the most favorite cryptocurrencies for cross-border payments, especially for enterprises and B2B. Its blockchain-based infrastructure, known as RippleNet, offers instant payment settlements with low transaction costs and robust compliance features.
RippleNet has collaborated with Tranglo to eliminate pre-funding requirements in over 20 countries. This has enabled real-time payouts in local currencies and stablecoins. RippleNet has also partnered with Thunes to cover over 90 payout markets and process more than $70 billion in volume.
RippleNet has also collaborated with Onafriq to strengthen its presence in Africa and provide efficient money movement across the continent. Ripple excels in B2B due to its speed, efficiency, cost savings, regulatory compliance, and multicurrency support.
2. Stellar (XLM)
Stellar’s XLM was designed to make money universally accessible and affordable. With its lightning-fast transactions that typically settle within 3–5 seconds, XLM has become the best choice for instant remittances and micro-payments.
Stellar has extremely low fees, averaging $0.00001 per transaction. It is significantly less than Western Union, which charges fees of 5–7%. XLM also acts as a bridge currency. It allows seamless conversion between fiat currencies on Stellar’s decentralized exchange (SDEX).
Stellar’s impact is most visible in regions with high remittance flows and limited banking access, like Sub-Saharan Africa. It powers payment apps like SureRemit and ClickPesa, helping people send money affordably and instantly.
In South American countries such as Argentina and Mexico, Stellar-based wallets provide dollar-pegged stablecoins to combat inflation and currency instability. Migrant workers in the Philippines and Vietnam use Stellar-powered platforms for remittances.
Stellar has also partnered with key financial institutions to bridge the gap between digital and traditional finance. MoneyGram enables users to convert USDC on Stellar to local cash at 30,000+ locations worldwide.
IBM World Wire enables instant cross-border payments for banks in over 50 countries by using Stellar’s infrastructure.
3. Solana (SOL)
Solana processes thousands of transactions per second (TPS). Its block times are around 400–500 milliseconds, which makes it ideal for real-time payments. Solana’s transaction fees are extremely low, which enables microtransactions and high-frequency transfers without breaking your bank account.
Visa has integrated Solana for stablecoin-based cross-border payments, which shows its enterprise-grade capabilities. Many real-world tokenized assets are now launching on Solana, which represents growing institutional confidence in it.
Solana supports a wide range of Web3 applications like gaming and ecommerce that rely on fast and cheap transactions. With thousands of active developers, Solana is driving new use cases in remittances and B2B payments.
Despite all the benefits mentioned above, Solana faces periodic outages and congestion. It has experienced several high-profile outages due to validator overload and software bugs. However, upgrades like Firedancer and Asynchronous Execution are being rolled out to enhance resilience and reduce downtime.
4. Tether (USDT)
Tether (USDT) has become the most widely used stablecoin in the world. In 2025, it’s not just a trading tool, but it is a global payment rail. With unmatched liquidity and consistent price stability, USDT plays a central role in remittances and P2P payments.
In March 2025, USDT reached $104.1 billion, becoming the largest stablecoin by market cap. It normally surpasses $75 billion in daily transactions, which is even more than Bitcoin and Ethereum.
Each USDT is backed by U.S. dollars, which ensures minimal volatility. USDT is becoming an increasingly popular choice for businesses and institutions for settlements and treasury management due to its predictable value.
In regions with limited access to U.S. dollars or banking infrastructure, USDT acts as a digital dollar, enabling affordable and fast remittances.
5. TRON (TRX)
TRON (TRX) is emerging as the go-to blockchain for low-cost and high-speed peer-to-peer (P2P) payments, particularly in Asia and Africa. Its ability to do thousands of transactions per second with negligible fees makes it ideal for remittances and microtransactions.
TRON can handle up to 2,000 transactions per second, which is slower than Solana but still faster than a lot of other rivaling systems. Transfers on Tron typically cost $0.000005, making it one of the most affordable networks for sending funds. Blocks are added every 3 seconds, ensuring near-instant finality.
TRON’s popularity is increasing in emerging markets, such as Africa and Asia. In Africa, various platforms utilize TRON for feeless transactions. In Asia, freelancers and small businesses in countries like Pakistan and the Philippines use TRON-based wallets for fast and borderless payments.
TRON faces criticism for its centralized governance model despite all the strengths mentioned above. In TRON, only 27 super representatives validate the transactions as compared to all governance token holders in other systems. This concentrates power and reduces decentralization.
6. USD Coin (USDC)
USD Coin (USDC) is one of the most trusted and transparent stablecoins in the cryptocurrency world. Issued by Circle, USDC is fully backed by highly liquid cash and short-term U.S. Treasuries. It operates within a fully regulated framework. This makes it a top choice for businesses and institutions that require reliable cross-border payment solutions.
Circle is considered one of the most licensed stablecoin issuers globally. It ensures full compliance with the financial regulations across all jurisdictions. Every USDC is redeemable for one U.S. dollar, with reserves held in cash and government securities. The USDC maintains a consistent peg to the dollar, making it an ideal currency for payments and treasury operations.
VISA now accepts USDC for settlement on its platform. It allows fintechs and crypto-native businesses to bypass traditional banking systems.
USDC is tailor-made for modern financial operations as it is available on 24 blockchains. USDC can move across borders and platforms with ease. With over $72 billion in circulation and deep market liquidity, USDC supports high-volume settlements and real-time trading.
7. Bitcoin (BTC)
Bitcoin (BTC) is the most recognized liquid cryptocurrency in the world. As the first digital currency built on blockchain, it is universally accepted and continues to serve as a trusted store of value for investors. Its decentralized nature and global reach make it especially useful in regions with unstable currencies or limited access to traditional banking.
With a market capitalization above $1 trillion, BTC enables large-value transfers easily. It is accepted by thousands of merchants and payment platforms worldwide, making it one of the most accessible cryptocurrencies for cross-border use.
However, Bitcoin has several limitations as well. Its transaction fees are high during network congestion. These fees can sometimes reach up to $5 to $20 per transfer.
Bitcoin’s average block time is around 10 minutes, and most transactions require multiple confirmations. This results in slower settlements as compared to the newer blockchains or stablecoins, defeating the purpose of fast and cheaper cross-border payments.
How do Crypto Cross-Border Payments Compare to Traditional Banking
International wire transfers via SWIFT can take 1 to 5 business days, depending on the countries involved and intermediary banks. While most blockchain-based transactions settle in seconds to minutes, regardless of geography.
Traditional cross-border payments have a multitude of fees, including transfer charges, foreign exchange fees, and intermediary bank charges. These can add up to 5–10% of the transaction value, which is extremely high for high-volume payments. While blockchain transactions typically cost fractions of a cent to a few dollars, depending on the network.
Traditional bank transfers require access to a bank account, which makes it difficult for people who don’t have bank accounts. With regional restrictions and varying compliance rules, the use of SWIFT also becomes difficult for users. In the world of crypto, anyone with a smartphone and an internet connection can perform transactions.
However, volatility, regulation, and infrastructure gaps remain hurdles for mainstream crypto adoption. However, as stablecoins and blockchain networks mature, the gap is narrowing.
Pros and Cons of Using Cryptocurrencies for Cross-Border Payments
While cryptocurrencies offer fast and cheap cross-border payments as compared to SWIFT, they are not without their drawbacks, like volatility and regulatory issues. Let’s explain both the pros and cons of using cryptocurrencies as a replacement for the traditional banking system in detail below.
Pros
- Most crypto transactions are complete within seconds to minutes, which is far quicker than traditional bank wires that can take days.
- Blockchain networks charge minimal transaction fees. It is usually less than a cent, making them ideal for remittances and micro-payments.
- Anyone with internet and a digital wallet can send or receive funds globally. There is no need for a bank account while using crypto.
- Crypto networks run continuously 24/7. They are not affected by weekends, holidays, or banking hours.
- Every cryptocurrency transaction is recorded on a public ledger. This allows for transparency and reduces the risk of fraud.
- All crypto payments are peer-to-peer. This eliminates the need for correspondent banks and reduces settlement delays.
Cons
- Cryptocurrencies (not Stablecoins) can fluctuate dramatically in value. This makes them risky for payments, unless stablecoins are used to maintain price stability.
- Crypto regulations vary widely across countries. This ends up creating uncertainty for users and businesses.
- While the cryptocurrency market is growing, it remains largely unaccepted by merchants and financial institutions.
- Managing wallets, private keys, and blockchain interfaces can be confusing for beginners.
- Some blockchains experience outages or congestion, which can delay transactions and reduce trust in the system’s stability.
Legal and Regulator Implications
Crypto regulations differ dramatically from country to country, like the UAE, Singapore, and Switzerland have embraced crypto with clear licensing frameworks and sandbox programs. Restrictive countries such as China and India have imposed bans or tight controls on crypto trading and usage.
This means a crypto transaction that’s legal in one country could be criminal in another. For businesses, this creates operational risk and limits scalability.
To combat illicit finance, most countries enforce Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. KYC mandates identity verification for users opening wallets or using exchanges for transactions. AML requires monitoring and reporting of suspicious activity, especially for large volume transfers.
Crypto platforms must comply with these rules to avoid penalties; otherwise, users may face account freezes or legal action.
Stablecoins like USDC and USDT are central to cross-border crypto payments. However, they are under increasing regulatory pressure. Stablecoin issuers must prove that real assets back each coin. Regulators also demand regular audits of stablecoins to ensure solvency and consumer protection. Some governments are even pushing for stablecoins to be issued only by regulated banks or under central bank supervision.
Unclear regulations pose serious challenges as users may unknowingly violate laws when sending crypto across borders. Companies can face fines or loss of licenses if they fail to comply with legal regulations.
Compliance is no longer optional; it is essential. It ensures that transactions are legitimate and traceable. Banks and enterprises require regulatory clarity to integrate crypto into their payment systems. Such transparent and compliant platforms attract long-term users and partners, thus increasing their growth in the long run.
Summing It Up
With an increase in the requirement for fast and cheap cross-border payments, cryptocurrencies can no longer be ignored. Currently, they are the only solution to this massive multi-billion-dollar problem. With near-instant transaction speeds and nearly zero fees, cryptocurrencies are rapidly replacing SWIFT and traditional banking.
However, cryptocurrencies are not without their drawbacks. Most of them still operate in a legal gray zone, and their volatility makes it difficult for everyday users to adopt them. With increasing pressure and governments’ attempts to control stablecoins, things can take a dangerous turn in the near future.
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FAQs (Frequently Asked Questions)
Q: Is Bitcoin good for cross-border payments?
A: While Bitcoin is a universally accepted cryptocurrency and can be used for cross-border payments, it is highly volatile and is considered illegal in various parts of the world. Stablecoins, like XRP, are a much better alternative to Bitcoin in general.
Q: Why are stablecoins preferred for international transfers?
A: Stablecoins are pegged to Fiat currencies, and they offer fast settlements with lower transaction fees. They allow international transfers in regions that lack traditional banking systems and are available 24/7.
Q: How fast are crypto cross-border payments compared to banks?
A: Traditional banks take around 3-5 days to complete international transactions, depending on the region and banks involved. Crypto cross-border payments are settled within minutes, regardless of their origin and destination areas.
Q: Is using crypto for cross-border payments legal?
A: It depends on the region. In countries like China and Pakistan, cross-border crypto payments are illegal and can lead to serious legal ramifications.
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