Case Study: TransFi Helps PSPs Reduce FX Costs on Cross-Border Settlements

9 Min

August 26, 2025

For payment service providers (PSPs), cross-border transactions are both an opportunity and a challenge. While global commerce continues to grow, settlement across multiple currencies introduces foreign exchange (FX) costs, delays, and inefficiencies. These costs eat into margins and can erode competitiveness.

In this TransFi case study, we explore how a leading PSP reduced FX costs on cross-border settlements by integrating stablecoin-based rails, achieving faster, cheaper, and more predictable results.

The Challenge: High FX Costs in Global Settlements

The PSP managed international merchant payments across Europe, Asia, and Latin America. Despite using traditional banking networks, they faced:

  • Excessive FX conversion fees – multiple intermediaries increased costs for every settlement.
  • Slow cross-border settlements – funds often took 2–4 business days to clear.
  • FX exposure – unpredictable rate fluctuations added risk to treasury operations.
  • Merchant dissatisfaction – delays and hidden fees reduced loyalty.

To stay competitive, the PSP needed a way to reduce FX fees, accelerate settlements, and provide merchants with more efficient payment options.

The Solution: Stablecoin Infrastructure for PSPs

The PSP integrated with TransFi’s stablecoin infrastructure, enabling blockchain settlement solutions for global payouts.

Here’s how it worked:

  1. Stablecoin Payments for Cross-Border Settlements – USDC and USDT were used as on-chain settlement currencies, bypassing costly FX intermediaries.
  2. Instant Global Settlements – Transactions cleared within minutes, not days.
  3. FX Efficiency With Crypto Rails – Using stablecoins pegged to USD reduced exposure to volatile FX swings.
  4. Seamless PSP Integration – TransFi’s single API allowed the PSP to support both fiat and stablecoin rails side-by-side.
  5. Global Payment Settlements – Coverage across 100+ countries and 250+ local rails expanded merchant reach.

The Results: Lower FX Fees, Faster Settlements

After implementing TransFi, the PSP reported measurable improvements in just 90 days:

  • 42% reduction in FX conversion costs – thanks to stablecoin-based settlements.
  • 80% faster settlement times – funds moved in minutes rather than days.
  • Improved treasury efficiency – reduced FX exposure simplified cash management.
  • Stronger merchant retention – lower fees and faster payments increased satisfaction.

This case study on PSP cross-border payments highlights how blockchain-powered infrastructure delivers both cost savings and competitive advantage.

Why TransFi?

For PSPs, TransFi provides a bridge between traditional finance and blockchain innovation:

  • Cross-Border Settlements – instant, low-cost, and globally compliant.
  • Stablecoin Infrastructure for PSPs – leverage USDC/USDT for cost-efficient payouts.
  • FX Cost Reduction – minimize reliance on bank intermediaries and unpredictable FX spreads.
  • Future-Proof Settlement Rails – one API for fiat, stablecoins, and crypto payments.

With TransFi, PSPs can modernize settlement processes, reduce costs, and provide merchants with superior global payment solutions.

Also read: Malta’s Payment Rails & How They Work – SEPA, Mobile Wallets & Banking Services

Conclusion

Cross-border payments are the backbone of modern PSPs, but legacy systems make them costly and slow. By adopting TransFi’s stablecoin infrastructure, this PSP achieved significant FX cost reduction and faster, more reliable global settlements.

This case study demonstrates how stablecoin adoption in cross-border payments is not just innovative—it’s an immediate competitive advantage.

FAQs

1. How do PSPs reduce FX costs with TransFi?
By settling in stablecoins, PSPs bypass bank intermediaries, cutting down on FX fees while gaining faster settlement speeds.

2. What stablecoins are used for PSP settlements?
Most PSPs use USDC and USDT, given their liquidity, stability, and global acceptance.

3. Is stablecoin settlement compliant?
Yes. TransFi ensures every transaction is fully KYC/AML compliant, making it safe for PSPs to adopt.

4. How does this impact merchant satisfaction?
Lower FX fees and instant settlement improve merchant margins and cash flow, directly boosting retention.

5. What makes TransFi different from other solutions?
TransFi combines blockchain payments for enterprises, corporate treasury-grade compliance, and global reach in one API—making it a complete settlement optimization platform for PSPs.

TransFi Team

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