Companies that operate globally depend on efficient international payments to pay suppliers, partners, and employees in different countries. However, many organizations still face high costs, opaque FX spreads, and long settlement times when making international transfers.
This scenario exists because much of the international payments infrastructure still relies on traditional banking systems, created decades ago, that involve multiple intermediaries and complex operational processes.
In recent years, however, a new generation of financial infrastructure has begun to transform this market. Technologies such as blockchain, stablecoins, and eFX (electronic foreign exchange) are enabling companies to make cross-border payments faster, more predictably, and at significantly lower costs.
If you are not yet familiar with this concept, it is worth understanding better what cross-border payments are and how they work.
In this complete guide, you will learn:
Why international payments are usually expensive
How much an international transfer costs for companies
How international remittances work today
Which technologies are transforming the cross-border market
How companies can reduce costs and gain efficiency in international transfers
How much does an international payment cost?
One of the most common questions among companies that make remittances abroad is: how much does an international payment really cost?
The answer depends on several factors, but the total amount can cost up to 5% of the transferred amount. In the traditional model, the cost usually includes four main components:
1. Exchange rate spread
Financial institutions usually apply a margin over the foreign currency quote. This difference between the official exchange rate and the rate applied to the customer is one of the main sources of cost.
2. Bank fees
Banks may charge administrative fees for executing the international transfer.
3. Intermediary banks
When the transfer passes through correspondent banks, each intermediary may apply additional fees.
4. IOF
Depending on the nature of the transaction, IOF may be applied to the transfer amount. When combined, these costs can represent a significant portion of the transferred amount, especially in recurring or high-volume transactions.
If you'd like to see this in more detail, it's worth reading the full article on how much an international transfer costs for companies.
How do international payments work today
In the traditional financial system, international transfers normally depend on a network of correspondent banks.
Instead of occurring directly between the originating bank and the destination bank, the transaction may pass through several intermediary institutions responsible for routing the payment between different banking systems.
The typical flow usually involves steps such as:
Sending the payment order to the bank
Currency conversion between the currencies
Sending through correspondent banks
Settlement at the recipient's bank
Each step adds costs and time to the transaction.
Comparison: traditional infrastructure vs. new international payment solutions
The difference between the traditional model and new financial infrastructures can be summarized as follows:
Transfer stage | Traditional banking model | Modern infrastructure (e.g., stablecoins) |
Currency conversion | Performed by the bank with a spread applied to the exchange rate | Conversion performed digitally with greater transparency |
Intermediaries | May involve multiple correspondent banks | Direct transfer on the digital infrastructure |
Settlement time | Usually between 2 and 5 business days | Can occur in minutes or within a few hours |
Predictability of the final amount | May vary due to intermediary fees | Greater predictability of the amount received |
Total costs | Exchange spread + bank fees + possible intermediaries | Simpler and more transparent cost structure |
Integration with systems | Usually manual or via banking platforms | Direct integration via APIs |
Scalability for businesses | Operations may require additional operational processes | More automated and scalable processes |
This shift is allowing companies to rethink how they carry out their international transfers.
The impact of IOF on international payments
Another important element in the cost of international remittances made by Brazilian companies is IOF (Tax on Financial Transactions).
Depending on the nature of the transfer — such as payment for services or financial remittances — the tax may be applied to the transferred amount.
For companies that make international payments frequently, this cost can become relevant over time. In addition, many companies do not have full clarity about when IOF will be applied or what the final cost of the operation will be, which reduces financial predictability.
New financial architectures, however, allow certain international payments to be structured without direct IOF incidence, depending on how the transaction is structured.
To understand exactly when this happens and how much it costs in practice, it's worth checking out the full content on IOF in international payments: when it is charged and how much it costs.
The growth of digital cross-border payments
The growth of global trade and the digital economy has created growing demand for faster, more efficient international payments.
Modern companies operate in environments far more dynamic than those for which traditional financial infrastructure was designed. Digital platforms make international payments daily, and companies often maintain suppliers or teams in different countries.
This context has driven the development of new financial infrastructures, including:
Blockchain networks used for financial settlement
Stablecoins used as a digital means of transferring value
eFX (electronic foreign exchange) platforms for digital foreign exchange
Financial APIs that allow direct integration with business systems
These technologies are creating a new generation of infrastructure for international payments.
Stablecoins and international payments
Stablecoins are digital assets whose value is pegged to fiat currencies, such as the U.S. dollar.
Unlike volatile cryptocurrencies, they are designed to maintain a stable value relative to the reference currency. One of the most widely used stablecoins globally is USDC
In practice, stablecoins can function as an intermediate layer in international payments. The amount sent can be temporarily converted into a stablecoin, transferred digitally, and then converted again into the recipient's local currency.
Despite this description of the flow, the operation can be completely transparent to the user, without them needing to know that the transaction takes place on a stablecoin structure. The amount is simply sent and received in the destination currency almost instantly
This model reduces dependence on intermediary banks and can significantly speed up the settlement process.
If you want to better understand this concept, we recommend reading everything your company needs to know about stablecoins.
On-ramp and off-ramp: connecting traditional currencies to the digital environment
To allow companies to use stablecoins without dealing directly with cryptocurrencies, there are infrastructures called on-ramp and off-ramp.
The on-ramp converts fiat currency into a digital asset.
Example:
Real → USDC
After this conversion, the value can be transferred through a blockchain network.
At the destination, the reverse process called off-ramp takes place, in which the stablecoin is converted again into the beneficiary's local currency.
USDC → local currency
For the company making the payment, all of this can happen transparently.
If you want to understand how this works in practice, also see what on-ramp and off-ramp are in the financial market.
What is eFX (electronic foreign exchange)
eFX represents the digitization of foreign exchange operations.
eFX platforms use technology to execute currency conversions automatically, without relying on manual processes in financial institutions.
This enables:
greater transparency in exchange rates
faster execution of transactions
direct integration with enterprise systems via API
greater financial predictability
How Azify simplifies international payments
Azify developed an infrastructure that combines different technologies to make international payments more efficient.
The solution uses stablecoins as a settlement layer, allowing companies to make international transfers with fewer intermediaries and greater predictability.
Through an integrated API, companies can send payment orders directly from their systems. The amount is converted into stablecoin, transferred digitally, and converted again into the beneficiary's local currency.
The technical complexity of blockchain remains encapsulated in the platform's infrastructure.
Who benefits most from this infrastructure
Companies that make frequent or high-volume international payments are the ones that benefit most from the modernization of cross-border infrastructure.
Among the main segments are:
Importers
Trading companies
Companies with international suppliers
Companies with global operations
Companies that make recurring payments abroad
Modernize your international payments
Companies that make international payments need efficient financial infrastructure to reduce costs, speed up transfers, and improve financial predictability.
With Azify, you modernize your cross-border operations using API integration, digital settlement, and new financial architectures.
If your company makes international payments to suppliers or partners abroad, it is worth learning about more efficient alternatives.
Talk to our specialists and find out how to modernize your international payments.
