2023-08-25clock10 minutes

Introduction: International Payrolls and International Transactions

The advent of digitization in today's world and the global expansion of markets have diminished the obstacles that once restricted companies to seek employees exclusively within their vicinity. The rise of remote work arrangements, the widespread use of freelance platforms, and the ongoing shift toward an increasingly digital era have effectively dismantled the confines of work. As a result, individuals hailing from various regions and nations now collaborate across international borders.

In response to market demand, there has been a notable rise in overseas salaries and international job transfers. However, navigating these processes presents a complex challenge for numerous companies.

Within this blog post, we will delve into all the essential factors that require your attention when compensating employees in foreign locations. Additionally, we will explore the potential benefits of utilizing cryptocurrencies as a viable solution to circumvent unnecessary complications.

What are the challenges of International Money Transactions?

Because of bureaucratic, technical, or various other factors, remunerating company personnel can often become entangled in a web of complexities. This situation is particularly pronounced when discussing the realm of international monetary transactions.

Drawing insights from the prevailing market conditions and the contemporary financial landscape, the subsequent issues have been pinpointed:

  • Transactions are Expensive - Having encountered international transactions even once, you are likely familiar with the prevalent methods of utilizing PayPal or Swift. However, it's worth noting that these approaches are often fraught with inconvenience and come with a substantial cost.
    When engaging with the international banking network, it's customary to encounter a baseline fee of $35, coupled with an average commission ranging between 3% and 5%. This cost structure can swiftly accumulate into significant amounts, particularly when dealing with frequent international transactions and salary disbursements.

  • Transactions require a lot of time - Despite the numerous technological advancements witnessed across financial and various other domains, it remains evident that international transactions have yet to attain a truly seamless and user-friendly status. Even within the context of contemporary advancements, international transfers still demand a considerable amount of time. It's entirely conceivable that a transferred salary or even a solitary payment may necessitate several days to reach its intended recipient.
    Note that it takes an average of one to five business days to process an international transaction through traditional banking systems.

  • Additional cost and technical issues - As international transactions persist as a notable vulnerability within the contemporary financial framework, executing such processes frequently necessitates a physical presence rather than remote management. This requirement compels employers to personally visit banks, incurring supplementary expenses not only in terms of time but also in energy. This scenario becomes particularly taxing when dealing with systematic and recurring transfers.

What alternatives does Crypto offer?

Cryptocurrencies have seamlessly woven themselves into the fabric of our everyday financial landscape over the course of several years. Beginning from 2018, there has been a substantial surge of 60% in the ownership of cryptocurrencies among individuals.

The adaptability showcased by cryptocurrencies in the context of international transfers and salary disbursements presents a compelling alternative to conventional currencies and the established financial system. This is particularly notable given the extensive history of successful implementation. A growing number of individuals, encompassing freelancers, IT professionals, and remote workers, have embraced the practice of receiving payment in cryptocurrencies.

What precise benefits can be attributed to the utilization of cryptocurrencies in international transactions, both from the perspective of the employer and the employee?

  • Low Fees - Undoubtedly, cryptocurrencies stand out as a markedly more cost-effective substitute for conventional FIAT currencies. The process of crypto transactions is characterized by notably lower fees.
    For instance, say you are paying employee via Cryptal, transferring a Bitcoin into their account. The associated fee for this transaction amounts to a mere 0.00005 BTC, roughly equating to approximately 3 Lari.

  • Instant Accrual - Amidst the array of advantages that cryptocurrencies offer, one standout attribute is the swiftness of transactions. Irrespective of the number of cryptocurrencies traversing global distances, the multitude of border crossings involved, or any other complexities, cryptocurrencies operate with a consistent speed. Devoid of the constraints of weekends, holidays, or even time of day, the crypto realm ensures instantaneous reflection of your sent cryptocurrency in the recipient's account.

  • Easy Transactions - In stark contrast to the conventional financial landscape, which demands your presence at a local bank and often entails navigating through bureaucratic hurdles, cryptocurrencies shine through with their straightforwardness and transactional ease.
    With a mere few clicks, you seamlessly transfer crypto assets from one digital wallet to another, all without having to step out of your office or even your home.

Taking these compelling advantages into account, it becomes evident that cryptocurrencies play a pivotal role in streamlining our day-to-day routines, enhancing business operations, and fostering a convenient process for both employees and employers engaged in overseas salary payments.

What are the challenges on the market?

Even as the user base of cryptocurrencies undergoes substantial growth, welcoming new participants into the fold of the crypto revolution with each passing day, it remains undeniable that the landscape is characterized by its own complexities, giving rise to misconceptions that continue to shroud the industry.

Employers often harbor concerns regarding the intricacies tied to crypto payments and remunerating employees through digital assets. Nonetheless, it's worth highlighting that the crypto infrastructure is now firmly established, and within the realm of Georgian crypto platforms, avenues exist that offer a blend of simplicity, rapidity, and secure transactions.

For Instance: an employer seeking to onboard a designer, or in more conventional terms, a programmer, and your intention is to disburse a monthly sum of $1000, adopting traditional financial avenues would entail navigating through the subsequent steps:

  • Go to the Bank
  • Fill the Transaction Form (To Apply Transaction Form that you are willing to make international payment)
  • Pay $35 Fee
  • Wait for your transaction to go to addressee

Excluding the factors of expended time and energy, you've already incurred fees amounting to 3.5%.

What about the crypto process? It starts by creating an account on Cryptal, an endeavor that involves a handful of uncomplicated steps and merely takes a few minutes. Following this, you top up the balance into your personal account through the utilization of TBC and Bank of Georgia cards. Importantly, this operation incurs a fee of 0%. Subsequently, you engage in an exchange where your USD stablecoin is converted into USDT, a cryptocurrency perpetually maintaining the value of $1. The final step involves sending this USDT to the intended recipient. The remarkable outcome of this process is the ability to execute the transaction without stepping outside your workplace or leaving the confines of your home or office. This approach ensures the swift delivery of assets to the recipient while constraining your transactional cost to just $1.

What solution does Cryptal offer?

Cryptal serves as a facilitator in streamlining international transactions and expediting the adoption of cryptocurrencies. Notably, for businesses, the advent of Wallet Pro has been orchestrated. This innovative solution significantly simplifies the landscape of routine cryptocurrency transactions and extends its benefits beyond, encompassing enhanced ease, cost-efficiency, and swiftness.

The distinctive offering from Wallet Pro bestows businesses with an enduring capability to maintain a consistent presence of cryptocurrency within their account. This equips them with the flexibility to effect transfers or employ their digital assets in accordance with their requirements, whenever the need arises. Beyond this, the platform empowers seamless conversion between cryptocurrencies and traditional fiat assets, offering promptness and cost-effectiveness. Furthermore, during transfers, enterprises can avail themselves of a minimal commission rate, commencing at a mere 0.2%.

Collectively, these elements converge to present businesses with a viable alternative solution for conducting international transfers and disbursing salaries to overseas personnel through the medium of cryptocurrencies.

Crypto is quite volatile, isn’t it?

For individuals who are new to the realm of cryptocurrencies and are embarking on their initial journey, a common query often revolves around the exchange rates of these digital assets.

To address such situations, stable cryptocurrencies, referred to as Stablecoins, have emerged. These digital assets are characterized by a consistent value maintenance. A prime illustration of a stablecoin is Tether (USDT), which is underpinned by reserves denominated in US dollars. This anchoring ensures that the value of 1 USDT invariably equals $1.

That’s why USDT is the most popular Stablecoin but there are many other alternatives like: USDC, Dai, TrueUSDT and etc.

Also note that when using Wallet Pro, there is an automatic Convert, which additionally protects your assets from the risks caused by fluctuations.

The technology embedded within Wallet Pro serves as a proficient aid for businesses and employees, sparing them from the intricate intricacies associated with international transactions and foreign salary disbursements.

For a detailed demonstration of the product, you can contact us at any time and you will receive a free consultation.

Summary: Crypto as the fastest and the cheapest way for International Payrolls?

Should your company boast a geographically dispersed workforce, requiring regular or even occasional engagement in international transactions or overseas salary payments, cryptocurrencies could emerge as the most prudent and advantageous alternative.

They offer you a fast, cheap and secure transfer option, which is becoming more and more important in the global job market.

To ensure you remain aligned with this burgeoning trend and to shift focus from bureaucratic challenges towards advancing your business objectives, Cryptal and Wallet Pro extend an enticing alternative when juxtaposed with the conventional financial framework.