Why More Companies are Turning to Stablecoin Payroll

Payroll challenges have become unbelievably complex in today’s global workforce, especially with remote roles and international hiring on the rise. 

Companies are dealing with issues like high transaction fees, long transfer times, and fluctuating exchange rates. 

To solve these problems, many businesses are turning to stablecoins for payroll. 

Stablecoins offer a secure and efficient way to handle payments, making international transactions smoother and more transparent. 

Rise is leading the way in this shift, offering innovative crypto payroll solutions for companies all over the world.

What is Stablecoin Payroll?

Most of us are already familiar with stablecoins, which are cryptocurrencies pegged to stable assets like the US dollar, which helps keep their value consistent. 

And we know this makes them a reliable way to store and transfer value without the wild ups and downs of traditional cryptocurrencies. 

Stablecoin payroll systems such as stablecoin payroll from Rise, let companies pay their employees using these stable digital assets. 

Compared to traditional bank transfers, stablecoins provide a much faster and more cost-effective way to make payments, especially when it comes to international transactions.

Why are More Companies Choosing Stablecoin Payroll?

The benefits of stablecoin payroll are substantial and we could be here all day listing every advantage, but let's just take a look at a few of the main ones below:

Cost Efficiency 

Transaction fees for stablecoin payments are much lower than those of traditional banking methods. 

In fact, companies save an average of 3-5% on payroll costs by using stablecoins.

Speed

With stablecoins, transactions are completed in minutes, no matter where the recipient is located. 

Traditional bank transfers can take 3-5 business days for international payments, which can be frustrating.

Transparency

Every transaction is recorded on the blockchain, which means there’s a clear, unchangeable record. This transparency reduces payroll disputes and builds trust.

A survey found that 62% of companies using blockchain payroll have fewer discrepancies.

Hedging Against Currency Volatility

For international workers, getting paid in stablecoins means they don’t have to worry about fluctuating local currencies. 

Stablecoins like USDC and USDT are pegged to the US dollar, which means their value stays steady.

The Increase of Global Remote Work and Freelancing

The rise of remote work has led to more international hiring, but paying international contractors can be cumbersome and expensive due to differences in banking systems and currency exchange fees. 

Stablecoins offer a solution by making payroll for global teams seamless, instant, and cost-effective.

In fact, over 40% of freelancers have said they’re interested in receiving part of their payment in cryptocurrencies, thanks to the benefits of stablecoins.

Rise has been a huge factor in getting companies to switch to stablecoin payroll. 

With Rise’s platform, businesses can easily implement crypto payroll, which helps cut costs and make sure payments are always on time. 

Compliance and Regulations

While stablecoin payroll has many benefits, regulatory compliance is still a major concern for companies. Cryptocurrency regulations vary greatly from one country to another. 

Rise tackles these challenges by ensuring full compliance through advanced tools like Chainalysis and SumSub, which monitor transactions, contractors, and makes sure everything follows local regulations.

For example, thanks to their partnership with SumSub, Rise is able to verify the identities and complete KYC and AML of international contractors.

From there, Rise also issues 1099s and gathers W9/W8-Ben forms directly with the contractors.

Real-World Use Cases

Many companies have already adopted stablecoin payments to overcome the challenges of traditional payment systems.

Industries like Web3, tech startups, and iGaming are particularly drawn to stablecoin payroll because they often have international teams.

For instance, a recent survey showed that a majority of Web3 companies are using stablecoins for payroll, citing faster transaction times and lower fees as the main reasons. 

iGaming companies, which frequently work with global contractors, also benefit from the streamlined payments and transparency that stablecoins provide.

Addressing Common Concerns

While stablecoins are phenomenal for a multitude of reasons, some companies still have their concerns.

Let's review and debunk some of these:

• Volatility Risks: One of the main concerns is the volatility of cryptocurrencies. But stablecoins like USDC or USDT are pegged to stable assets, which makes them far less volatile compared to cryptocurrencies like Bitcoin. 
• Tax and Legal Compliance: Dealing with tax and legal compliance can be tricky. Rise offers support by providing documentation and resources to help companies stay compliant with global regulations when paying their employees in stablecoins.
• Employee Preferences: More and more employees are open to getting paid in stablecoins. According to a Deloitte survey, 45% of millennials would be willing to receive part of their salary in cryptocurrencies if given the choice. This shows that stablecoin payroll is not only beneficial for employers but also attractive to many employees.

Rise: The Best Option for Stablecoin Payroll

As touched on earlier, Rise provides a full platform for companies looking to transition to stablecoin payroll as the platform is user-friendly and has features that make managing crypto payroll simple and efficient.

However, one of the biggest benefits of choosing Rise is their emphasis on compliance. 

The platform integrates with compliance tools to make sure all transactions meet regulatory requirements. 

Additionally, Rise makes it extremely easy for employees to convert stablecoins into their local currency if needed since the platform handles all conversions. 

Conclusion

As we can see, stablecoin payroll is gaining traction fast because it’s cost-effective, quick, and fits perfectly with global markets. 

Web3 companies are finding stablecoins to be a perfect solution to their traditional payroll challenges, especially when working with international teams.

If you would like to learn more about stablecoin payroll, you can check out Rise.