cross-border payments: a cost structure problem

Some people think cross border payments are a pricing problem but it’s actually a cost structure problem.

The goal of every company is to make money, grow revenue. You can do this via two ways: increase sales or reduce costs. Most teams focus on the former when the latter is where you can find real leverage.

For instance, any business moving money across borders has to deal with several factors that directly impact your unit economics:

– Fees across multiple intermediaries
– FX spreads that eat into margins
– Capital locked across corridors to manage liquidity
– Waiting days for settlement

Stablecoin rails directly address these by moving a few vectors:

– Settlement going from days to minutes
– Costs compress meaningfully
– Capital does not sit idle across markets

You can keep the product the same by changing the rails underneath. At Transak we work obsessively with teams that want to make this shift without rebuilding from scratch.

If you are exploring this as well, you can take a look here: https://lnkd.in/eUwC9EgE