Sending money across borders? Total headache. First, the fees are brutal—on average, you’re losing 6.3% of what you send, and for some countries, it’s even worse. Then there’s the wait. According to the Bank of England, it can take days to process a single payment, costing up to 10 times more than local transfers. 

Oh, and 15% of these payments fail, thanks to currency hiccups or mismatched systems. That’s where crypto comes in. Fast, cheap, and borderless, it’s ready to flip this outdated system on its head. Are you ready to ditch the hassle? Please read on!

The Problem with Traditional Cross-Border Payments

Some of the challenges faced by traditional cross-border payments.

As stated, traditional cross-border payments come with lots of headaches which include.

1. High Fees That Drain Your Wallet

Sending money abroad feels like highway robbery. On average, 6.3% of your cash disappears in fees. For some places, it’s even higher. Imagine transferring $500 and losing over $30 just to cover costs. Plus, banks often tack on hidden charges, like exchange rate markups, which leave you with less than expected. Why so pricey? Banks and payment processors take their cut at every step.

2. Slow as a Snail: Long Processing Times

“Three to five business days” is the classic line, but payments can take even longer. It’s like sending a letter by snail mail in the digital age. The Bank of England says cross-border payments can take several days, unlike domestic payments, which are almost instant. If you’re in a hurry, too bad—traditional systems just can’t keep up.

3. Too Many Middlemen

Every time you send money internationally, it hops through a chain of intermediaries. Each one takes time and adds fees. Your payment might pass through several banks before reaching the recipient, which slows things down and hikes up costs. 

4. Compliance Makes Things Worse

Banks must follow strict rules to prevent money laundering and fraud. While necessary, these regulations slow everything down. For example, banks might ask for 20+ data points before processing your payment. If even one detail is missing or wrong, your transaction gets delayed or rejected. Frustrating, right? Let’s see how crypto could shake things up this year.

How Crypto Will Solve These Issues in 2025

Crypto is here to revolutionize cross-border payments, offering speed, affordability, and transparency like never before. Let’s break it down:

1. Faster Settlement Times

Average transaction speed and confirmation time of some top cryptocurrencies according to a Research Gate study.

Forget waiting days for your money to reach its destination. Crypto transactions take just 1–60 minutes, depending on the network and how busy it is. The transfer happens instantly if both the sender and receiver use the same crypto exchange or wallet. Imagine sending money to your friend abroad and having it in their account before you finish your coffee. That’s how fast crypto works.

2. Lower Transaction Costs

Average transaction fees of some cryptocurrencies.

Say goodbye to those $40–$50 bank fees. With crypto, sending money internationally is much cheaper. The cost depends on the platform and the cryptocurrency used. Some apps let users send cross-border payments for free if both parties stick to the same currency. Want to send Bitcoin? It’ll cost you just $1–$3. Dogecoin? Even cheaper at around $0.22 on average. Compare that to traditional banking fees, and it’s clear crypto saves you money.

3. Increased Transparency

Blockchain’s role in enhancing crypto cross-border payments’ transparency.

Ever sent money and wondered, “Where did it go?” With crypto, you’ll never feel that way. Blockchain technology keeps a permanent, public record of every transaction. You can track your payment in real-time, knowing exactly when it’s sent, received, and confirmed. No more mystery, just complete peace of mind.

4. Accessibility to Unbanked Populations

Over 1.4 billion people worldwide don’t have access to traditional banks. Crypto changes that. All you need is a smartphone and an internet connection to create a wallet with platforms like CoinCROWD and start sending or receiving payments. Whether you’re a farmer in a remote village or a gig worker in a big city, crypto levels the playing field.

5. Reduced Risk of Fraud

Worried about scams? Crypto offers extra protection. Every transaction on the blockchain is secure and verified, which makes it nearly impossible to alter or fake. Plus, payments can’t be reversed after confirmation, so chargeback fraud—a common issue with credit cards—is off the table. This makes crypto a safer option for both senders and receivers.

Challenges Crypto Needs to Overcome

Countries with the most crypto ownership, according to Triple.

Even though crypto has a lot of promise, it’s not perfect yet. There are still a few bumps in the road that need smoothing out:

• Volatility: Crypto prices can jump up and down wildly. One day, your Bitcoin could be worth $100k; the next, it drops to $90k. This makes it hard to rely on crypto for stable payments, especially if you’re on the receiving end.

• Regulatory uncertainty: Governments are still figuring out how to handle crypto. Some countries, like the UAE, are starting to get more organized, with new rules that help crypto businesses. For example, the UAE made crypto activities VAT-exempt as of October 2024, making it more attractive for companies.

• Adoption and integration: Right now, only about 6.8% of the world uses crypto, and that number is still growing. It’s not everywhere yet, so getting everyone on board is a big challenge.

The Future is Fast, Cheap, and Borderless

Crypto is set to change the way we send money globally. It promises faster transactions, lower costs, and a more transparent, accessible system for everyone, no matter where you are. While there are still some challenges to overcome, like volatility and regulation, the potential is huge.

CoinCROWD is your go-to platform for turning crypto into real-world spending power if you're ready to embrace the future. CoinCROWD makes it easy to use your crypto without the headaches of high fees or slow transfers. Explore it today.