The Future of Cross-Border Payments: Why Stablecoins Are Poised to Disrupt B2B Finance
For decades, international business-to-business (B2B) transactions have been hampered by unhurried, expensive and opaque payment systems. Even as consumer payments have entered the digital age, many businesses still rely on PDFs, emails, and traditional banking methods. But a shift is underway, driven by the rise of stablecoins and fintech companies like XTransfer, aiming to modernize global trade finance.
The Pain Points of Traditional Cross-Border Payments
XTransfer CEO Bill Deng highlights a critical disconnect: while ports, airports, and fulfillment centers operate 24/7, the financial infrastructure supporting them does not. This leads to delays, and inefficiencies. Businesses often negotiate using pro forma invoices and exchange information via email – a process that feels decidedly outdated in today’s prompt-paced global economy.
Small and medium-sized enterprises (SMEs) are particularly affected. Many are forced to turn to unregulated “shadow banking” systems like “hawala” – a centuries-aged method of money transfer – to overcome the limitations of traditional banking. While faster and more accessible, these systems carry risks, including scrutiny from governments due to their potential use in money laundering.
Stablecoins: A Potential Solution
Stablecoins – digital tokens pegged to a fiat currency like the U.S. Dollar – offer a compelling alternative. Deng argues they can make payments “more transparent, faster, and with a much lower cost,” especially for cross-border transactions. The total market value of stablecoins has reached $300 billion, a 75% increase year-on-year, signaling growing adoption.
Still, stablecoins still represent a small fraction of overall payments, accounting for only $390 billion annually, or 0.02% of the total. Regulatory frameworks are also still developing, with governments in the U.S., Japan, and Hong Kong establishing rules for their use.
XTransfer’s Role in the Evolution of B2B Payments
XTransfer is positioning itself at the forefront of this transformation. The company, founded in 2017 as a B2B version of Alipay, now serves over 800,000 enterprises and processes over $12 billion in payments each month, handling over 2% of China’s exports. They’ve recently formed strategic partnerships with major banks in Malaysia (Maybank), Thailand (Kasikornbank), and Taiwan (Bank SinoPac).
XTransfer leverages AI to improve compliance accuracy at a fraction of the cost of traditional banks. Deng also believes stablecoins can aid governments in monitoring illicit financial flows, as transactions can be tracked and frozen quickly if suspicious activity is detected.
Shifting Trade Flows and the Rise of the “Global South”
XTransfer is witnessing a significant shift in global trade dynamics. The company’s data reveals a decline in the U.S. Share of payments flowing through its platform – from 22% a few years ago to just 9% today. Conversely, flows from countries in the “Global South” now account for 70% of the total.
Business in Asia, Africa, and Latin America grew 106% in 2025, with Africa experiencing a surge of over 270%. This suggests a move towards a more decentralized global economy, with supply chains becoming more networked and less reliant on single manufacturing hubs.
Deng envisions a future where Chinese businesses play a key role in fostering growth in manufacturing sectors across the developing world, mirroring the role the U.S. And Britain played in China decades ago.
FAQ
Q: What are stablecoins?
A: Stablecoins are digital currencies designed to maintain a stable value relative to a specific asset, usually a fiat currency like the U.S. Dollar.
Q: How can stablecoins improve cross-border payments?
A: They offer the potential for faster, cheaper, and more transparent transactions compared to traditional methods.
Q: What is XTransfer?
A: XTransfer is a fintech platform focused on providing B2B payment solutions, particularly for cross-border transactions.
Q: Is hawala a safe way to transfer money?
A: While faster and more accessible, hawala operates outside the formal banking system and carries risks related to regulation and potential use in illicit activities.
Did you know? The stablecoin market has grown by 75% in the past year, reaching a total value of $300 billion.
Pro Tip: Businesses looking to streamline cross-border payments should explore stablecoin solutions and partner with fintech companies specializing in international finance.
What are your thoughts on the future of cross-border payments? Share your insights in the comments below!
