Despite the convenience and user-friendly experience that services like Wise (formerly TransferWise) offer, the underlying system for international payments remains largely unchanged. While these platforms have improved the front-end experience, they still rely on traditional banking networks for settlement, meaning the same inefficiencies, delays, and costs persist.
Providers like Wise have made international payments more accessible and transparent, but they still depend on the complex web of correspondent banking networks to settle the underlying funds. As mentioned in our earlier post, this model requires multiple intermediaries to pass a transaction through a chain of banks, adding costs in the form of intermediary fees and foreign exchange markups.
These fees are often obscured from the end user, resulting in a higher total transfer cost. Additionally, each intermediary introduces potential delays due to varying operating hours, regulatory checks, and processing times—meaning even a “fast” payment can take days to settle.
To create the appearance of instant transfers, international Fintech companies rely on maintaining local liquidity, or a “float,” in different countries. This means they have to maintain substantial relationships and infrastructure with local banks in every region that they operate.
This model has significant limitations. Building and maintaining local banking partnerships introduces dependencies that can lead to service disruptions, increased costs, and slower transactions—particularly in markets where these relationships are harder to establish. Moreover, it means navigating complex regulatory environments, handling local taxes, and meeting local capital requirements, all of which add operational complexity and cost.
While payment providers like Wise have improved the user interface, their core operating model remains tied to the traditional banking system. Banks’ limited operating hours, regulatory hurdles, and different processing times all mean that payments are not truly instant. To the user, a payment may seem seamless, but in reality, it’s still passing through a series of banks, each with its own inefficiencies. The polished front end can't disguise the limitations of the underlying network.
Blockchain technology offers a fundamentally different solution. Unlike traditional banking networks, blockchain-based systems operate 24/7, 365 days a year, globally and without intermediaries. This eliminates many of the delays and costs associated with correspondent banking networks. Transactions are settled in real time on a decentralised ledger, providing instant finality and reducing the need for local liquidity and complex banking partnerships.
From a regulatory standpoint, blockchain has additional benefits. Its inherent transparency makes tracking and verifying transactions easier, enhancing compliance with KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements. This transparency streamlines regulatory oversight and builds user trust, as they can see exactly where their money is and how it's being managed.
Stable Mint's EURSM and USDSM stablecoins present a compelling alternative to traditional payment providers. Unlike typical cryptocurrencies, stablecoins are collateralised 1:1 by fiat currencies like the euro or dollar. This provides a recognised unit of account and a secure, predictable medium of exchange. Stablecoins offer all the advantages of digital assets—instant settlement, low cost, global accessibility, and security—without the volatility. Moreover, stablecoins in the EEA are regulated by the EBA and must adhere to the same standards as traditional Electronic Money Institutions (EMIs).
The benefits of blockchain-based payments go beyond cost savings and speed. By removing the need for traditional banking infrastructure, blockchain provides financial services to regions poorly served by existing networks. Economic instability, political risks, and underdeveloped financial infrastructure in many parts of the world prevent access to basic banking services. Stable Mint’s EURSM and USDSM can help bridge this gap, enabling individuals and businesses in these regions to participate in the global economy.
While traditional payment providers have made strides in improving user experience, their dependence on outdated banking infrastructure limits their potential. Blockchain-based payments offer a revolutionary model that is faster, more cost-effective, transparent, and accessible.
Ready to experience the future of payments? Contact us today to discover how Stable Mint can revolutionise your global transactions.
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Stable mint Ltd. is a fully licensed Electronic Money Institution (EMI) authorised by the Malta Financial Services Authority in terms of article 4 of the Financial Institutions Act (Chapter 376 of the Laws of Malta) for the authorised activities of issuing electronic money as defined in the Third Schedule.
