Remember when the stablecoins were just a niche subject during cryptographic conferences? No more. Today, the Stablecoins occupy the front of the stage during the Consumer Public Fintech Meetup in the United States in Money 2020 in Amsterdam.
So what has changed? While the stablecoin Payment volumes have increased regularly for years (with increasing demand for digital dollars in emerging markets), the last six months have been transformers. New regulations and major announcements of industry holders have increased to stables of “interesting but niche” to a conference room priority for financial technologies around the world.
While major acquisitions like Stripe’s and Moonpay have made the headlines, not all fintechs want to buy their path. But the construction from zero risks completely the time. The good news is: there is a path in the middle.
What we have learned in partnership with Fintechs
In the past year, I had countless conversations with payment leaders through industry – buyers to issuers, neobanks at payment networks. Many have already created innovation teams to explore Stablecoin payments, while others have invested in blockchain portfolio solutions.
At BVNK, we built a payment company by dealing $ 12 billion in the annual volumes of Stablecoin. This experience has given us unique information about how stablecoins are used today and challenges were waiting for those who implement them.
Analysis of stable use cases
1. B2B settling: a useful starting point
Why does it work: Regulation B2B represents about half of our payment volumes in BVNK. Our Fintech customers use stablecoins for:
- Adjust the cross-border with traders (in particular the first adopters of the crypto themselves).
- Collect payments to local PSPs on emerging markets.
The attraction is simple: the world’s scope and the near instant settlement make stablecoins an excellent alternative to the corresponding banks, especially in the emerging markets. Faster regulation means happier customers and a reduction in pre -financing requirements.
Starting is also simple – no complex API integration required. Everything can be managed via the portal of your supplier.
2. Consumer payments: get the right UX
B2C Stablecoin payments have become our fastest segment, now making up a third of our payment volumes. Even companies outside the cryptographic space require stablecoin payments:
- Get by Allows world entrepreneurs
- Worldpay Helps traders to pay sellers, creators and hosts worldwide, especially when the volatility of currencies exists
For consumer -oriented applications, the user experience of stablecoin payments is essential:
- Reduce friction by allowing portfolio connections and economy preferences
- Offer several Stablecoin options (geographic preferences count!)
- Supported several blockchains, but encourages those that correspond to your use case
- Increase your scope: Consider creating portfolio in platform at the payment point for users who do not yet have a blockchain portfolio.
3. Domestic regulations: the unexpected use case
While cases of cross-border use have an early momentum, we see an increasing interest in using stabbed for the movement of domestic money, in particular when weekend establishments are necessary (for example, PSPs serving retail events or great sportsmen)
Traditional payment rails are often delivered with limitations: for example, they do not work during the weekend or you have to pay a supplement for payment options the same / instant day. Blockchains operate 24/7/365. This calls for banks wishing to avoid the risk of settlement and buyers / fintechs who seek to reduce costly pre-financing loans on weekends.
Monitor the industry leaders testing this use case in 2025.
Practical considerations for the implementation of stablecoins
You don’t need to manage the crypto directly
Many of our partners prefer not to touch the stablescoins themselves due to license problems. If it’s you, associate with a supplier who can:
- Hold your Fiat sales in saved accounts
- Automatically convert between fiat and stablecoins if necessary
- Manage the necessary regulatory requirements
Most of the stablecoin payment flows today involve a fiduciary element, so find an comfortable partner with a tender width in both worlds.
It is also useful to use a Stablecoin partner who is under license on a global scale, or at least for the markets that you want to use Stablecoins, so you don’t need to work with several different suppliers to serve your customers.
Look at the surface with regard to the technological battery
Stablecoins change what is possible with payments, and many suppliers adopt them now. But the technological battery is critical.
When startups build a stablecoin payment infrastructure “in their basement” without investing in technology, it generally does not extend fairly quickly and becomes very difficult to use and maintain.
Similarly, if you count too much on third parties (for example, third-party blockchain portfolio solutions) to arrive faster, you may find that they are less able to respond to technical problems and bugs. At BVNK, we have invested 5 years in the construction of our own stablecoin payment infrastructure designed to move money effectively on a large scale.
With our flexible integration options, our partners can be operational quickly with stablecoin payments via our merchant portal, while completing complete API integration.
Create flexibility of costs in your model
Different use cases require different costs of costs:
- For entrepreneurs’ payments, you can spend blockchain and conversion costs to users
- For salary payments, employers or fintechs generally cover these costs
Choose a partner offering flexibility in the way you structure the transaction costs. The good news? The basic cost of stablecoin transfers is generally cheaper than traditional banking alternatives.
Financial crime prevention: to separate the myth from reality
Despite persistent myths, blockchain’s transparency can in fact improve LMA practices compared to traditional finance – with good tools and good partners.
When assessing Stablecoin’s payment partners, make sure they have:
- A robust financial financial control framework
- Reasonable diligence process improved for customers
- Effective monitoring of suspect transactions and activity reports
- Compliance of travel rules for sharing secure information.
Prepare for stablecoins
Stablecoins represent the most exciting infrastructure for payments for decades. Although integration can be complex, you don’t need to start from scratch.
At BVNK, we help fintech and PSPs to integrate stablecoins into their existing offers. Find out more about how we support our Fintech partners.