In the boundary-less world of modern business, the desire to move funds across borders faster, cheaper and more securely has never been higher.
Outdated financial institutions are no longer well-suited to meet the needs of global markets, weighed down by inefficiencies, fees and lags that can impede the progress of cross-border commerce. Insert stablecoins and financial automation into the equation, and what emerges is a future where international trade can evolve in ways it never has before.
For companies, small businesses and online entrepreneurs eager to participate in the international economy without the obstacles of the traditional financial system, a stablecoin-native API can be exactly what they need.
The Rise of Stablecoins in Business
Stablecoins, as the name implies, are cryptocurrencies designed to be stable in value, with their prices often pegged to a real-world asset such as the US dollar, euro or other types of fiat currencies. Compared to standard cryptocurrencies such as Bitcoin and Ethereum, stablecoins do not suffer from high volatility or are seldom hit with massive price swings, which makes them perfect to use in everyday business transactions.
With stablecoins, businesses are able to avoid the involvement of banks and third parties in their transactions, they can make their payments faster, in a more reliable and cost-effective manner and are even able to make transactions 24/7. For UK startups and small companies that are doing business with other companies around the world, this means that the latter could get access to their funds a lot quicker. They can manage their cash flow a lot better, and there wouldn’t be any unwanted surprises in transaction fees.
Why an API Matters
The concept of stablecoin payments is not really new. However, what makes it truly transformational is the power of an application programming interface (API). An API enables businesses to develop and deploy stablecoin payments into their apps, websites and platforms that can range from invoicing to subscriptions, automatically.
It’s like embedding global payment rails into your software, without building everything from scratch. Businesses can trigger, receive and reconcile payments automatically, in real time and without having to leave their application.
Real-World Use Cases
Take an E-commerce platform based in the UK, paying freelancers in Southeast Asia. Ordinarily, sending an international transfer could take days and cost up to 5-7% in fees. With a stablecoin payment API, businesses can settle in seconds, for a fraction of the price, without the need to worry about foreign exchange rate risks or banks taking days to clear the funds.
Similarly, if you are a SAAS company, with customers across Europe, the US and the African continent, you can use a stablecoin API to auto-generate invoices, send stablecoin-denominated bills and receive payments in your preferred currency, all without touching a fiat bank account, even once.
The Business Benefits: Cost, Speed and Compliance
Using APIs for stablecoin payments is not just more efficient — it’s also cheaper. By cutting out the middlemen, businesses can save considerably on fees, an especially compelling argument when you’re operating on high volumes or low margins.
Beyond that, many APIs are already equipped with compliance solutions. They take care of KYC/AML checks, do transaction monitoring and support regulated stablecoins. That way, you have the best of both worlds: you can retain full access to the benefits of DeFi infrastructure, without needing to worry about getting into the crosshairs of international financial regulation.
One provider in that space is Due, which offers a few simple APIs that give businesses the easy option of sending and receiving global stablecoin payments. Their platform is specifically designed for quick onboarding and near-instant transaction processing, which makes it easier for companies to grow their business in the digital economy.
The Future of Cross-Border Payments
As global digital business models scale, so too must the economic infrastructure. Global stablecoin payments APIs are not a fintech trend; it is a new fundamental layer of money movement across nations.
For UK founders, small businesses and digital-first enterprises looking to expand globally, it might represent the opportunity for faster settlement, high liquidity, and actually operating globally, worth a newfound sense of possibility.
Money is finally moving to be programmable, stable and instant… And it’s here!
Read more:
API for Global Stablecoin Payments: Unlocking a New Era of Cross-Border Business