How Cryptocurrency Helps Startups Succeed in Emerging Markets
While entrepreneurs everywhere face obstacles, startups in developing economies deal with additional hurdles: from unstable currencies to complex bureaucracy.
Cryptocurrencies offer great advantages that directly address these challenges. In this blog post, we'll share the top 4 challenges of emerging markets and how crypto helps you scale and succeed with fewer barriers.
1. Banking barriers in emerging markets
De-risking by financial institutions creates major problems for startups in emerging markets. Banks often limit or cut off services to entire regions they consider too risky, particularly in areas they perceive to have weak anti-money laundering measures.
For startups, this means:
- Limited access to basic banking services
- Difficulty securing loans and credit
- Barriers to receiving international payments
- Restricted access to capital
Blockchain offers a solution by providing a decentralized platform for financial transactions. You can access peer-to-peer lending, secure capital through decentralized finance (DeFi) platforms, and process payments without relying on traditional banking systems.
2. Smart contracts: Less paperwork, more growth
In emerging markets, basic business processes can stretch from days into months. This bureaucracy creates significant delays that hold back growth. Smart contracts on the blockchain help solve this problem.
Smart contracts are simply agreements written in code that execute automatically when certain conditions are met. This means:
- No more waiting for middlemen to process agreements
- Faster execution of contracts
- Complete transparency for all parties
- Reduced chances of disputes
- Lower operational costs
3. Cross-border payments made simple
Traditional international payments are a constant headache for startups in emerging markets. The current system is slow, expensive, and often unpredictable. Cryptocurrency payments offer several advantages:
- Instant transfers: Complete transactions in minutes instead of days
- Lower fees: Avoid expensive wire transfer charges
- Direct transactions: Skip bank intermediaries
- Always available: Make payments any time, regardless of bank hours
For subscription-based services operating internationally, crypto payments eliminate concerns about exchange rates and bank fees cutting into profit margins.
If this sounds interesting, you can start accepting recurring crypto payments in a few minutes, and it’s completely free to set up.
4. Protection against inflation with stablecoins
Currency instability is a common challenge in emerging markets. Sudden devaluation can quickly erode your profits and complicate financial planning. Stablecoins—cryptocurrencies pegged to stable assets like the US dollar—offer a practical solution.
Stablecoins help your startup by:
- Preserving value during local currency fluctuations
- Providing reliable access to stable currencies
- Enabling predictable pricing with international partners
- Offering quick currency conversion at fair market rates
This is particularly important in countries with volatile economies where inflation can rapidly impact business operations. With stablecoins, you can maintain stable pricing for international services and supplies, regardless of local currency movements.
Getting started with crypto payments
The global shift toward cryptocurrency adoption creates opportunities for subscription-based startups. By implementing crypto payments early, you can build stronger international customer relationships and expand into new markets more easily.
Ready to start accepting cryptocurrency for your subscription service? You can begin processing recurring crypto payments in less than a day, with no setup fees.