With technological advances, businesses and creative projects have grown in size. The internet has made it possible for companies to find customers and followers outside their country. Global expansion has never been easier. However, international payments can be challenging—requiring a lot of paperwork and translation costs.
This does not have to be the case, though. Using smart contracts from a payment service provider, fintech startups can reach their target audience and interact with the broader market for growth.
Smart contracts are an affordable solution that makes use of Ethereum blockchain technology and offers a standardized option for transactions to allow for the expansion of global payouts.
Read on to see how fintech businesses can expand global payments with smart contracts.
What is a Smart Contract, and How Does it Work?
A smart contract is a digital agreement in the form of a computer code stored and executed on the blockchain that regulates financial transactions. Smart contract code can also minimize the risk, reduce costs associated with financial transactions, and eliminate conflict and wasted time.
Smart contracts are becoming increasingly popular and can make agreements more efficient as they help remove human error. They're often used because they allow businesses to work more efficiently, achieving results without paperwork, physical contracts, or communication.
Smart contracts allow businesses to expand global payouts by digitally facilitating, verifying, or enforcing the negotiation or performance of an agreement. They enable crypto payouts, offer business security, transparency, speed, and efficiency, and allow parties to exchange assets privately, securely, and with minimal friction.
How Can a Business Use Smart Contracts?
Businesses can use smart contracts to automate the contract agreement process and save time. Because all parties know what they need to do and have immediate access, outcomes are more certain. Smart contract use cases include real estate, facilitating trade finance, monitoring digital assets, and supply chain management.
Crypto is part of a busy digital world. This is primarily due to their ease of use and accessibility across borders, making dealing with payments between businesses easy and quick. Now you can trust that your transaction will be received or sent. Sila offers a smart contract platform that is secure and reliable, so you can rest assured that your payments will be transferred as agreed.
Unfortunately, the volatility of cryptocurrencies makes their use increasingly tricky. Crypto values often change, which means that people buy and sell at quick rates. Access to smart contracts allows fintech companies and their customers to make these transactions more efficiently than many financial institutions are able to.
How Does Crypto Facilitate Payouts?
Cryptocurrencies like Bitcoin have already changed the way money is transferred. Bitcoin is decentralized and has eliminated the need for any intermediary to approve transactions between peers and businesses. It provides faster processing times, more options for receiving funds, and lower fees. This is where Sila comes in.
Blockchain technology offers a new way of doing things by drastically reducing the costs and time associated with exchanging money and eliminating fraud risk.
With this new update to the system, you can settle your payments more quickly than in the past. You don't need to worry about transactions because smart contracts automatically settle payments, making real-time transactions more feasible.
With a distributed ledger, blockchain is an ideal solution for companies that do not want their funds to be locked up. This means that payouts can be accessed on the same day.
Smart Contracts for International Payouts
With the expanding economy, it makes sense that traditional methods of making international transactions are becoming more expensive and complicated. Many international payment transfers charge a percentage on transactions, and the transfer will take several days to reach a bank account.
Digital currencies, such as Bitcoin and Ethereum, have advantages over traditional currencies. By employing digital currency, you can transfer funds internationally much faster than conventional methods, especially in countries with poor financial infrastructure. And by allowing blockchain transactions, more people can access funds. Blockchain is a decentralized ledger that will enable users to save their cryptocurrencies securely. Sila's white-label digital wallet API lets you decide how your company should implement the usage of blockchain technology.
The blockchain can store sensitive information and provide users with reliable security. Smart contracts have benefits for both business owners and individuals. This means that fintech companies can do business with a broader base and a larger market.
How the Blockchain Technology Can Help You Expand your Global Payouts
A payment service provider can make all the difference when running an eCommerce operation or selling digital downloads. They also help you grow your business without spending a small fortune.
Sila’s Payment Infrastructure
Sila offers payment processing solutions for businesses with the innovative money transfer API. With a payment infrastructure, your customers can open bank accounts, send money, receive money, view transactions, and other financial services.
A partnership with a payment infrastructure partner can help your business provide more secure payment services.
Sila's API allows for secure bank account links, KYC and KYB identity verification, and some compliance-related features that enable you to provide your customers with secure financial transactions.
Payment software is a versatile program that can benefit the work environment. Features such as debit cards may be used to provide a better customer service experience.
How Smart Contracts are Changing the Norms and Structures of Global Payouts
Blockchain technology can help simplify how people can access their money. This provides a level of convenience and accessibility that is only just becoming available.
It's hard to keep track of your finances when you rely solely on the banking system. You have to worry about lost information, time, and wasted efforts.
The Sila API package offers the opportunity for businesses to build a payment API. Fintech startups can use the payment API to complete compliance checks like Know Your Customer or Know Your Business (KYC and KYB), secure bank accounts linking blockchain transfers, and digital wallet security for users on mobile devices and online apps.
In the past, these payment methods were only available to many people in the US and some other countries, but not globally. This means that many individuals are limited in terms of what money they can send, when and where they can access it, and how they want to control it.
How Blockchain Technology Can Help You Supercharge Your Business Growth
Blockchain can be the answer to your business's growth. It is a transparent and decentralized ledger that records transactions across many computers. With this technology using a blockchain-based smart contract, you can reduce the time, costs, and risks of doing business and make it easier for your company to manage the supply chain, maintain customer records, and asset management.
Blockchain technology is a game changer for businesses because it makes it easier to do business. It reduces costs and risks while making supply chains more efficient.
Using Sila to Expand Your Global Payouts
Sila is a global payments platform that provides easy access and seamless payment entry for businesses and their customers.
Sila will easily automate and streamline a complicated process, provide analytical capabilities that put other companies to shame, and support various services for businesses of all sizes. With this API, you'll know where every penny comes from and where it ends up.
With Sila, your business can now expand its global payouts and reach a wider group of customers with the help of technology. Sila ACH and banking APIs allow for secure, reliable transactions.