How to pay a supplier in stablecoins

In this video, I’m going to show you how to pay a partner or supplier in stablecoins. Stablecoins such as USDC (or USD Coin) are digital currency much like bitcoin or ethereum, but they're different because their worth is tied to the US dollar. That means their value doesn't swing wildly, making them a great option when you want to make payments using a digital currency.

Now, let’s imagine you’re an import/export business with suppliers in India or a remittance company with payment partners in Asia.  Your supplier has chosen to receive USDC, a well-known type of stablecoin, because of its speed and low-cost To help you do this, you have a multi-currency account set up with your fintech partner.
That’s us! BVNK.

To make the payment, you log into your BVNK account and click “Send”, enter the wallet address of your supplier, the currency and amount you want to send. You’ll be shown the conversion rate - which is valid for up to 1 hour – and any fees charged by your fintech partner. Click send. Your safety is our top priority. That's why we require you to use two-factor authentication to approve any transactions. We also offer other ways to keep your account secure, such as setting limits and having approved lists of safe contacts. Alright that’s it  – your payment has been successfully submitted to the blockchain.

Now let’s flick over to the Ethereum blockchain to see what’s happening there. Imagine the blockchain as a large digital ledger recording all payments. When you initiate a payment, a 'node' which is a computer, processes your request much like a mailman handles your post. In Ethereum, validators - similar to accountants - verify payment details and document them on a block, much like a page in our ledger. Other nodes review this block for accuracy before adding it to the blockchain. Once enough nodes (about 12) have confirmed the block, within approximately 5 minutes, your supplier receives the payment.

Back in your account, the payment status is updated to ‘Paid’ and your wallet balance adjusted. So that’s how you pay a supplier in stablecoins.

Note that you can also automate this process using an API. Feel free to explore them on docs.bvnk.com.

We hope you found this video useful.