The True Cost of Traditional International Payments
When you send money internationally through traditional banking channels, you're not just paying the stated fee. Hidden costs include:
Visible Fees
- Wire transfer fees: $25-50 per transaction
- Correspondent bank fees: $15-30 per intermediary
- Receiving bank fees: $10-25
Hidden Fees
- FX Markup: Banks typically add 2-4% on top of the mid-market exchange rate
- Lifting Fees: Some banks charge the recipient to "lift" incoming wires
- Inquiry Fees: Charged when you track a payment
Example: Sending $5,000 to a contractor in Germany
- Stated fees: ~$45
- Hidden FX markup (3%): $150
- Correspondent bank fees: $30
- Total real cost: $225 (4.5% of payment)
The BlockchainPAY Alternative
With BlockchainPAY, the same $5,000 payment costs:
- Network fee: ~$0.50
- Platform fee: $5 (0.1%)
- Total real cost: $5.50 (0.11% of payment)
That's a 97.5% reduction in fees.
Step-by-Step: Your First International Payment
Step 1: Create Your Account (5 minutes)
- Visit blockchainpay.biz/auth/signup
- Enter your business email and create a password
- Complete basic business verification
- You're ready to go
Step 2: Add Funds to Your Wallet
Option A: Direct USDC Deposit
- If you already have USDC, deposit directly to your BlockchainPAY wallet
- Supports deposits from Ethereum, Polygon, Base, and more
Option B: Bank Transfer
- Link your business bank account
- Transfer USD and we'll convert to USDC
- Funds available within 1-2 business days
Step 3: Add Your Contractor
- Navigate to Dashboard → Send Payment
- Enter contractor's email address
- They'll receive an invite to set up their receiving wallet
- Once they set up, they're added to your contacts
Step 4: Send Payment
- Select the contractor from your contacts
- Enter the payment amount (in USD)
- Add an optional note or invoice reference
- Click "Send Payment"
- Payment arrives in seconds
What Your Contractor Receives
Your contractor can:
- Hold USDC: Keep funds in their BlockchainPAY wallet
- Convert Locally: Use our off-ramp partners to convert to their local currency
- Transfer Out: Send USDC to any compatible wallet
Most contractors report receiving funds with 0.1-0.5% total conversion costs—far better than the 5-7% they'd lose with traditional banking.
Compliance and Documentation
BlockchainPAY automatically generates:
Best Practices for Paying Global Teams
1. Establish Clear Payment Terms
Document your payment schedule, currency, and method in contractor agreements. We provide templates that include crypto payment clauses.
2. Batch Payments When Possible
While individual payments are cheap, batching monthly payments saves time on approvals and reconciliation.
3. Communicate Payment Expectations
Let contractors know:
- When to expect payments
- How to set up their wallet
- Who to contact with questions
4. Keep Records
Maintain documentation of:
- Contractor agreements
- Payment amounts and dates
- Services provided
- Tax forms (W-9, W-8BEN)
Frequently Asked Questions
Q: Is this legal?
A: Yes. Paying contractors in cryptocurrency/stablecoins is legal in most jurisdictions. We provide compliance documentation and tax reporting tools.
Q: What about taxes?
A: You're still responsible for tax withholding and reporting obligations. We generate 1099 forms for U.S. contractors earning over $600 annually.
Q: What if my contractor doesn't have a crypto wallet?
A: No problem! BlockchainPAY creates a hosted wallet for them. They can convert to their local currency through our off-ramp partners.
Q: How do I handle refunds?
A: Contractors can send refunds directly back to your BlockchainPAY wallet. The transaction is just as fast as the original payment.
*Ready to simplify your international payments? Get Started Free and pay your first contractor in minutes.*