Stablecoin Remittance Fees 84% Lower Than Traditional Methods, Survey Finds

Fees for cross-border transfers using stablecoins are about 84% lower than those charged by traditional remittance methods, a survey found. For a $200 transfer, the median fee was $2 for stablecoin-based transfers, compared with $12.72 for conventional services.

Cointelegraph reported on October 16 that payments network Borderless.xyz said in its third-quarter report that the median fee rate for a $200 stablecoin transfer was 1%. The comparable median fee rate for traditional remittances, based on World Bank data used in the comparison, was 6.36%.

Stablecoins also showed a cost advantage in emerging markets. In Latin America, the fee rate was 1.25% for stablecoin transfers and 5.64% for traditional methods. In sub-Saharan Africa, the figures were 2.9% and 8.46%, respectively, leaving stablecoin transfer costs at about one-third of traditional services.

The gap was also evident in business-to-business transfers. Sending $10,000 to the euro zone through the cheapest stablecoin-based service cost $26. A traditional international bank transfer cost $135 to $150, including fees and foreign-exchange margins.

The report also compared deposit speeds through local payment rails. After a stablecoin transfer, the median time for funds to reach a recipient's account via Brazil's PIX and Colombia's PSE was less than two minutes. Mexico's SPEI took three minutes. SWIFT transfers typically settled the next business day, while the slowest 10% took three business days.

Completion rates varied by payment network. Mexico's SPEI and Brazil's PIX posted rates of 98.6% and 97.8%, respectively, while Costa Rica's SINPE stood at 73%. Lower costs and faster processing did not translate into the same level of service quality across every remittance corridor.