Stablecoins already make international payments cheaper - and will transform the Brazilian market

The myth of cheaper stablecoins in the US

In recent years, many analyses have compared stablecoins with traditional payment networks such as credit cards and SWIFT, arguing that they are a cheaper option. However, this comparison doesn't always reflect reality - especially in the US financial system.

The main flaw in these comparisons is confusing the network fee with the real cost to the end user. Often, when analyzing the costs of a transaction via Visa or SWIFT, the perception that these networks are expensive comes from the final price paid by the merchant or consumer. But in practice, the networks direct fees are minimal compared to the costs added by intermediaries.

For example, in the case of a $100 credit card transaction:

• The fee charged by Visa may only be $0.15.

• However, the merchant may end up paying up to $3.20, due to intermediaries such as acquirers, issuing banks and payment providers.

  

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The big issue here is that the real cost comes not from the network itself, but from the different participants who are part of the transaction. Each of these intermediaries verifies, processes, passes on and settles the payments, adding fees and complexity along the way.

In the case of international payments via SWIFT, the problem gets even worse. SWIFT doesn't move money directly - it just transmits messages between banks. But because these messages pass through several financial intermediaries, each one adds its own checks, fees and settlement time, meaning that a global payment can take days and cost between $40 and $120 per transaction.

In the US, networks such as ACH and FedNow already offer low transaction fees, making stablecoins less attractive for domestic payments in the short term. In addition, the traditional banking system has strong regulations and compliance rules, which make it even more difficult to integrate stablecoins directly into retail.

On the other hand, stablecoins are not just a cost alternative, but a new financial infrastructure that solves many of the problems caused by these intermediaries.

Stablecoins: more than cost, a revolution in infrastructure

The comparison between stablecoins and networks like Visa or SWIFT can be misleading because the real impact of stablecoins goes beyond saving fees. What they do is create a new layer of financial infrastructure, which can:

• Eliminate unnecessary intermediaries - allowing direct transactions, without the need for acquirers or correspondent banks.

• Automate compliance and reconciliation - reducing the time and cost of manual checks.

• Offer real-time global settlement - eliminating the days or weeks of delays that occur with traditional international payments.

Just as the internet transformed the way we communicate by creating a universal protocol, stablecoins are creating a higher layer for global payments, allowing companies and individuals to transact directly, without the need for multiple banking intermediaries.

This change may not be so evident now in a market like the US, where domestic payments are already relatively efficient. But for emerging markets and international payments, the difference is already clear - and that's where the Brazilian market comes into the equation.

But what about the Brazilian market? The story is different

While transaction costs are relatively low in the US, the reality of international payments in Brazil still involves significant barriers.

The SWIFT system remains the main option for international transactions, and the cost can vary from R$50 to R$200 per operation, in addition to the exchange spread, which can exceed 4% depending on the bank.

This model makes global payments slow, expensive and inefficient, especially for remittances, export/import and payments to international suppliers.

Given this scenario, stablecoins already represent a cheaper and faster alternative for the Brazilian market, as they eliminate intermediaries and allow direct payments, reducing dependence on traditional banks.

Stablecoins vs. Pix: Who wins in the Brazilian market?

In recent years, Pix has revolutionized local payments, making transactions almost free and instantaneous. This means that, within the country, stablecoins don't have much of a competitive advantage in the short term.

However, Pix still doesn't solve international payments, as it relies on banks and intermediaries to carry out currency conversions and global transfers. This is where stablecoins become essential.

Comparing the two infrastructures:

In other words, stablecoins are not competitors to Pix, but an essential complement for companies operating globally.

How stablecoins are already transforming payments in the Brazilian market

The adoption of stablecoins in the Brazilian market is already a reality, especially for companies that deal with international payments. Some examples include:

• International remittances: Companies and individuals already use stablecoins to send and receive money from abroad without going through SWIFT.

• Exports and imports: Businesses that buy or sell products globally can receive payments in stablecoins and reduce exchange costs.

• Payments to freelancers and suppliers: Professionals and companies in the Brazilian market are adopting stablecoins to receive international payments cheaper and faster.

In addition, startups and fintechs are creating infrastructure to facilitate the conversion between BRL and stablecoins, making this alternative increasingly accessible.

International payments accessible to all

Stablecoins still face challenges, such as regulation, compliance and integration with the traditional financial system, but the global trend points to growing adoption.

In the Brazilian market, stablecoins already enable more efficient international payments, but their potential goes beyond that. Another great example of this digital financial infrastructure is the possibility of accessing yields on stablecoins, without the need for a traditional banking intermediary.

Today, stablecoins pegged to the dollar allow companies and individuals to store value and generate income in a more accessible way, often obtaining higher returns than those offered by local banks. This mechanism can be an interesting alternative for businesses that operate on tight margins and need more efficient solutions for liquidity management.

If, on the one hand, stablecoins already make international payments faster and cheaper, on the other, their evolution as a programmable financial infrastructure could transform the way companies manage capital, reserves and treasury in the long term, showing that the space for integrating this technology goes beyond payments.

The future of payments will not be defined by what is cheapest today, but by what creates the best infrastructure in the long term. For companies wishing to reduce costs, eliminate intermediaries and expand their business globally, the time to explore stablecoins is now.

Want to understand how your company can integrate stablecoins into its international payments? Get in touch and find out more about this new era of global financial infrastructure.

Text adapted from article by Simon Taylor