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Why You Should Make Borderless Payments Using Crypto

2021-03-25

Traditional borderless payments can be cumbersome, with each transaction involving a network of intermediaries made up of banks and financial institutions. Intermediaries are each assigned a unique identifier, which is used throughout the payment process. All intermediaries must approve the transaction before the recipient receives payment. This is why traditional borderless payments take between one to five days to complete. High fees are incurred as each intermediary takes a cut from the transaction. 

In contrast, peer-to-peer (P2P) crypto exchanges like Binance P2P remove intermediaries from the payment process. Users can directly transfer crypto funds with one another. Because all cryptocurrency transactions are recorded on blockchains, the geographic distance between the sender and recipient is irrelevant.  

How to Make Borderless Payments Using Crypto 

Peer-to-peer exchanges make it easy for users to send crypto funds directly to other users. Many peer-to-peer exchanges operate in a similar function, but popular exchanges like Binance P2P feature deeper liquidity, more payment methods, and more ads/listings from users looking to buy and sell crypto—all without fees. Users who prefer speed and convenience can complete transactions online by linking their bank account, credit card or debit card. Users who don’t have access to traditional bank accounts can complete transactions in person, using cash. 

Advantages of Borderless Cryptocurrency Payments 

1. Low Transaction Fees

Many peer-to-peer exchanges allow users to make borderless crypto payments without taking a cut of the transaction. Not only can users save on every transaction, but the savings are often significant when it comes to high value borderless transactions, which can cost several times less than traditional borderless payment methods.

2. Cryptocurrencies Offer Greater Variety

International transactions have currency restrictions and most recipients must receive the transfer in their local currency equivalent. Except under rare circumstances, the recipient must have a bank account to receive the funds. With cryptocurrencies, the recipient can get exactly what is sent. For example, you can send BNB from the United States to Mexico and your recipient will receive BNB instead of the Peso equivalent.

3. Cryptocurrencies Offer Fewer Restrictions

Many cryptocurrencies are decentralized, so transactions can be completed directly between the two parties, without intermediaries getting involved or “approving” the transaction.  

4. Near Instant Transactions

While traditional borderless transactions take days to complete—and even weeks if there are delays, peer-to-peer crypto payments are near-instant. You can even send borderless crypto payments using a peer-to-peer exchange in roughly the same time it takes for you to send an email, regardless of the size of the transaction.

Disadvantages of Borderless Cryptocurrency Payments

1. Regulatory Uncertainty

Cryptocurrencies have come a long way since 2009, but regulatory clarity still varies from region to region. If you are living in a region facing regulatory uncertainty, you may be able to receive cryptocurrencies through P2P platforms. However, you may face some challenges when converting the tokens to your local currency.

2. Volatility Might be a Problem

Some cryptocurrencies are particularly prone to price fluctuations. If you don't like the uncertainty that comes with such volatility, you may be more comfortable making peer-to-peer transactions with stablecoins, which are pegged on a 1:1 basis with select fiat currencies. This is especially true for business owners who are receiving payments for products or services rendered.

3. Mass Adoption Remains Elusive

Cryptocurrencies are still underutilized and misunderstood despite all the progress made over the last decade. Though peer-to-peer cryptocurrency exchanges allow unbanked users to transfer value without the constraints that centralized institutions bring, cryptocurrency awareness remains low in many countries. Crypto education remains a barrier to adoption for many, though this is beginning to change. 

Now that you know the advantages and disadvantages of borderless peer-to-peer crypto payments, it is up to you to decide whether Binance P2P is the right option for you. 

Once you have registered on Binance, you can access Binance P2P and start making transactions. Using this platform, you can send and receive Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB, and DAI. Binance P2P supports 55 fiat currencies across more than 150 countries worldwide. You can buy or sell cryptocurrencies directly with other users, set your own prices and conduct transactions with zero fees. Binance also provides an escrow service to ensure transactions remain safe, secure, and fair. 

How to Start Trading on Binance

Before you can make your first transaction on Binance P2P, you must register on Binance and complete your Identity Verification process. Our P2P merchants undergo a screening process where we also verify their identity and business. 

Once the verification process is complete, it only takes a few clicks to make your first transaction. 

Read the following FAQ items for more information: