International B2B Payments: how to reduce costs and time for cross-border transfers with Blockchain

Blockchain payments are up to 5,000 times cheaper and 432,000 times faster than traditional bank transfers, revolutionising international transactions.

International B2B payments are undergoing a profound digital transformation driven by businesses of all sizes increasing adoption of innovative technologies. In 2023, the total volume of these transactions reached $39.3 trillion, with a projected compound annual growth rate (CAGR) of 11.4% between 2023 and 2028.

According to a survey by the Capgemini Research Institute, Europe remains the global leader in total digital B2B transaction volume, while the Asia-Pacific region significantly contributes to the sector’s international expansion. This growth is closely tied to the rise of B2B online marketplaces, which surpassed 750 platforms worldwide in 2023 and are expected to reach 1,000 by 2025. By 2030, these marketplaces’ gross merchandise value (GMV) could hit $26 trillion.

While globalisation initially drove growth in the B2B payments sector, the real breakthrough has occurred in recent years, particularly in the aftermath of the pandemic. The surge in digital transactions has pushed many businesses towards B2B e-commerce, fundamentally reshaping the commercial landscape.

The meaning of B2B

B2B (business-to-business) refers to transactions, relationships, or commercial exchanges between two businesses rather than between a business and an end consumer. This model is widely adopted across various industries, including wholesale trade, professional services, and digital B2B platforms.

In essence, B2B encompasses direct interactions between businesses, focusing on providing products, services, or solutions that support business operations and growth.

Use cases for international B2B payments.

Businesses frequently need to make cross-border payments in a range of scenarios, including:

• B2B E-commerce
• Import and export activities
• Software subscriptions (SaaS)
• Salaries for international employees
• Corporate trading and investment
• Repatriation of funds and treasury flows (for multinational corporations)

However, traditional payment methods face significant challenges in costs and processing times, which can directly impact cash flow and business growth.

FinTech Innovation and Blockchain

In response to these challenges, FinTech companies, such as Young Platform, are driving advancements in instant payment technology. This is particularly critical given that only 13% of European banks have robust infrastructure to support fast payments.

Collaboration with FinTech providers enables businesses and banks to accelerate processes across several market segments:

• B2B (Business to Business): Transactions between businesses.
• B2C (Business to Consumer): Payments from firms to consumers.
• C2B (Consumer to Business): Payments from consumers to businesses.
• P2P (Peer to Peer): Direct transfers between individuals.

According to a survey conducted by Capgemini Research Institute, 21% of banks interviewed globally prefer to collaborate with existing FinTech companies to leverage their expertise and technology. Relying on external solutions instead of developing internal systems reduces costs and time to market, enabling the development of scalable solutions for a wide variety of targets.

Explore our B2B services

Costs are a critical issue in international payments

High costs of traditional methods

Traditional payment methods, such as international bank transfers, credit card networks, and wire transfers (SWIFT or SEPA), continue to incur significant costs, directly impacting the affordability and efficiency of cross-border transactions.

• High Fees: Credit card transactions cost between 2% and 4% for international payments, while bank transfers often include hidden fees due to the complexity of global networks.
• Currency Conversion Costs: Exchange rate fees and currency volatility can significantly increase final costs.
• Nostro/Vostro Accounts: Some banks use separate foreign currency accounts with high operational costs, passing the burden onto customers.

According to the Remittance Prices Worldwide report by the World Bank:

• The average cost of remittances in G8 countries is 5.87%.
• In G20 countries, this rises to 6.47%.
• Regions like Europe and Central Asia (ECA) saw significant increases in 2024, with costs rising from 6.66% in 2023 to 7.39% in 2024.

Blockchain: a more cost-effective alternative

In contrast, blockchain payments offer significantly lower costs. Depending on the blockchain network used, fees for international transactions can be drastically reduced:

• Ethereum: $6.42 per transaction, competitive compared to traditional methods.
• Solana: $0.007 per transaction, one of the fastest and most affordable solutions.
• Polygon PoS: $0.02 per transaction, ideal for micro-payments.
• Avalanche C-Chain: $0.16 per transaction.
• Base: $0.21 per transaction.
• Arbitrum: $0.25 per transaction.
• Optimism: $0.28 per transaction.

Blockchain technology introduced by digital and FinTech services is becoming an increasingly attractive option for reducing international transfer costs and improving transaction efficiency.

Slow Settlement Times

Traditional payment methods often suffer from lengthy settlement times, causing delays in fund availability:

• Automated Clearing House (ACH): 1-3 business days.
• International wire transfers: 1-5 business days.
• Debit/credit card payments: 1-3 business days.
• Paper cheques: 2-5 business days (plus potential postal delays).

In contrast, blockchain payments offer much faster processing times:

• Bitcoin: ~60 minutes.
• Ethereum: ~15 minutes.
• Stellar: ~5 seconds.
• Sui: Less than 1 second.

Poor User Experience and lack of traceability

International payments face numerous challenges regarding transparency and security, which can slow operations and increase risks, especially for small businesses that are often less equipped to address these issues.

• Fragmented Regulations: Each country has its own rules, making compliance difficult and creating inefficiencies in traditional payment systems.
• Limited Visibility: Traditional methods often provide a poor user experience and need more transaction traceability, complicating operation monitoring.

Fraud risks and security in International Payments

International payments are particularly vulnerable to cyberattacks and fraud attempts, especially when using outdated systems. The slowness of traditional payment methods increases the likelihood of fraudulent interventions.

In contrast, blockchain networks offer a solution to these challenges by providing:

• Enhanced Speed: Faster transactions reduce the time window for potential fraud.
• Improved Traceability: Every transaction is recorded on a public, immutable ledger, ensuring complete visibility and security.
• Higher Security Standards: Advanced encryption and decentralised structures make blockchain payments far less susceptible to cyber threats.

How new technologies benefit businesses

Adopting advanced technologies for international payments provides three key advantages for businesses:

1. Market Expansion: More efficient payments facilitate access to foreign markets and enhance global trade opportunities.
2. Process Automation: Automation reduces errors, accelerates transaction processing, and strengthens fraud prevention mechanisms.
3. Greater Transparency: Companies gain better visibility over costs, processing times, and exchange rates, allowing for more accurate financial planning.

Blockchain and Its Impact on B2B Payments

The blockchain is transforming international B2B payments, offering a unique combination of speed, transparency, security, and reduced costs, making it one of the most promising technologies in the global financial sector.

Advantages of Blockchain

Blockchain enables transactions with distinctive benefits:

• Fast and Cost-Effective: Payments made on the blockchain can be up to 5,000 times cheaper than traditional methods like bank transfers and up to 432,000 times faster, particularly for cross-border transfers.
• Traceable: Every transaction is recorded on an immutable public ledger, ensuring transparency and ease of monitoring.
• Secure: Using stablecoins such as Tether (USDT) and USD Coin (USDC) eliminates the volatility risks of traditional cryptocurrencies, as these are pegged 1:1 to fiat currencies like the US dollar or euro.
• Regulated: Stablecoins like USDC already comply with international regulations, including the EU’s MiCAR framework.

Stablecoins: A Solution for International Payments

A stablecoin is a cryptocurrency designed to maintain a stable value over time. It is typically pegged to a reference asset such as a fiat currency (e.g., the US dollar or euro), a commodity (e.g., gold), or a basket of assets. This type of cryptocurrency combines the stability of traditional currencies with blockchain technology, enabling fast, cost-effective, and transparent transactions. Stablecoins are used in international payments, protection against cryptocurrency volatility, and as a bridge between traditional and digital financial systems.

For example, the USD Coin (USDC) is pegged 1:1 to the dollar. This means that 1 USDC always equals 1 US dollar.

Layer 2: the next frontier in payments

The term Layer 2 refers to technological solutions that operate on top of a primary blockchain (called Layer 1, such as Ethereum or Bitcoin) to improve scalability, reduce transaction costs, and increase processing speed. These solutions offload some operations from the main blockchain by executing them off-chain while still ensuring security and decentralization. Layer 2 solutions are essential for addressing the network limitations of Layer 1 blockchains, such as congestion issues. Many of them support stablecoins, which, as mentioned, are well-suited for payments due to their stable value. Additionally, with ultra-low transaction costs, they are ideal as a payment system.

Examples of Blockchain Applications

Leading companies are embracing blockchain-based solutions:

• Visa B2B Connect: Utilises blockchain for bank-to-bank transactions without requiring cards.
• Mastercard Send: Provides instant payments via a private blockchain.
• Stripe and USDC: Enables payments with regulated stablecoins like USD Coin, ensuring compliance and security.

Innovative platforms like Young Platform support businesses adopting blockchain for international payments, offering simple, efficient, and customisable tools to improve global payment processes.

Simplify Your International Payments

To learn how blockchain can optimise your company’s international payments, contact the Young Platform team at [email protected].

Explore our B2B services

Related Articles

• Bot Only Euro: The solution for accepting crypto payments without tax implications
• OTC Desk: What it is and how it works
• What Are Sub-Accounts For?
• Bitcoin for Corporate Treasury Management