Businesses often need to move money across borders to pay suppliers, employees, other companies within the same group, or external business partners.
Stablecoins provide another way to make these payments. Businesses can transfer digital assets such as USDC or USDT over a blockchain, allowing funds to move between countries without passing through multiple banks.
What are cross-border payments for businesses?
A cross-border B2B payment is a payment flow between businesses in different countries. This can include paying an overseas supplier, running international payroll or moving funds between subsidiaries.
Why businesses use stablecoins for cross-border payments
Stablecoins can address several common challenges with international business payments.
- Settlement speed: Unlike SWIFT network transactions, stablecoin transactions can settle within minutes, rather than taking several business days.
- Cost efficiency: fewer banks involved in the payment process can result in lower fees.
- Price stability: stablecoins such as USDC and USDT are designed to track the US dollar, making them less volatile than unpegged crypto assets.
Common business use cases
Stablecoin payments can be used across several business payment scenarios.
Paying supplier invoices
Businesses can pay overseas suppliers and service providers in fiat currency or stablecoins.
Stablecoin payments can settle in real time, allowing suppliers to confirm receipt sooner.
For larger transactions, businesses can use Independent Reserve’s OTC desk to convert larger amounts between fiat and crypto before or after the payment.
Running global payroll
Paying employees across several countries can require different banking relationships, payment methods and local currencies.
Independent Reserve’s payment infrastructure allows businesses to manage international payroll through a single payment process. Recipients can be paid through supported payment methods in their local currency or in stablecoins, with payments settling the same day.
Moving funds between subsidiaries
Businesses with entities in several countries may need to move working capital between them.
Funds can be transferred between group entities in fiat currencies or stablecoins, helping subsidiaries access working capital faster.
Accepting stablecoin payments from customers
Businesses can also receive payments in USDC or USDT.
The funds can be settled directly into the business account, where they can remain in stablecoins to be used to pay supplier invoices or applied as a funding source to pay future supplier invoices in fiat.
Those funds can be held as stablecoins and used later to pay suppliers, either in stablecoins or converted to fiat when the payment is made.
How cross-border payments work with stablecoins
Businesses do not necessarily need to manually buy and transfer stablecoins for every payment.
With Independent Reserve, the process is as follows
- The business funds its account using fiat currency or stablecoins.
- Fiat is automatically converted to USDC or USDT as part of the payment, with no separate manual conversion step.
- The payment is sent to the recipient over the blockchain.
- Once settled, the recipient can receive the funds in stablecoins.
Businesses processing larger payment volumes can also connect their systems to Independent Reserve through an API. This can automate transactions, provide real-time payment tracking and simplify reconciliation.
How stablecoin payments compare with traditional cross-border payments
Traditional international bank payments commonly use the SWIFT network to exchange payment instructions between financial institutions.
Depending on the payment route, money may pass through one or more correspondent banks before reaching the recipient. This can add processing time and additional fees.
Stablecoin payments use blockchain infrastructure instead. Funds can move between the sending and receiving parties with fewer intermediaries, allowing settlement outside standard banking hours.
| Stablecoin payment | Traditional bank payment | |
| Settlement time | Typically within minutes | Often one to five business days |
| Banks involved | Fewer banks | May involve several banks |
| Fees | Network and provider fees can be lower and more transparent | Fees can vary by bank and payment route |
| Availability | Blockchain settlement operates 24/7 | Can depend on banking hours and cut-off times |
How Independent Reserve supports cross-border payments
Independent Reserve supports cross-border business payments using fiat currencies and stablecoins, with payouts available in more than 20 currencies, including USD, SGD, AUD, HKD, INR, VND, KRW and EUR.
Independent Reserve is licensed by the Monetary Authority of Singapore to provide Digital Payment Token services and is ISO 27001 certified.
Business customers also have access to dedicated relationship managers and support for multiple fiat currencies and stablecoin networks.
See Independent Reserve’s payment solution for businesses for more information, or view our fees.
Frequently asked questions
Can businesses use stablecoins for cross-border payments in Singapore?
Yes. Businesses in Singapore can use stablecoins such as USDC and USDT for cross-border payments through providers like Independent Reserve that support these services.
How long do stablecoin cross-border payments take?
Stablecoin transactions can typically settle within minutes once confirmed on the blockchain network. Traditional international bank payments may take several business days, depending on the banks and payment route involved.
Which stablecoins are used for B2B payments?
USDC and USDT are widely used for business payments. Both are designed to track the value of the US dollar, making them less volatile than unpegged cryptocurrencies.
Can a business fund its account in fiat and pay in stablecoins?
Yes. Businesses can fund their account using supported fiat currencies and have funds automatically converted to USDC or USDT as part of the payment process.
Do stablecoin payments remove currency conversion costs?
Not necessarily. Currency conversion costs can still apply when converting between fiat currencies and stablecoins. Stablecoin payments can, however, reduce the number of banks involved and the fees they may charge.
Can a business receive stablecoins without converting them to fiat?
Yes. Businesses can receive USDC or USDT and choose whether to hold the stablecoin.
Can businesses automate stablecoin payments?
Yes. Independent Reserve provides API integration for businesses that need to automate transactions, track payments, and simplify reconciliation.
Can businesses use an OTC desk for large cross-border payments?
Yes. An OTC desk can help businesses convert larger amounts between fiat and crypto before or after a cross-border payment. The OTC desk supports the conversion, not the transfer itself.
