The Accountant's Guide to Stablecoins in Accounts Payable

Everyone's talking about crypto in terms of "which coin will moon next", but the real story isn't about speculation - it's what's happening quietly in accounts payable and receivable departments, where finance teams are using stablecoins to slash their international wire fees by 80% when paying vendors.

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Let me show you the exact playbook they’re using to pull this off. Whether you're paying one vendor or managing hundreds of international payments, you'll see how to make the transition without disrupting your existing controls and compliance processes.

Real Example: Paying Vendors in India from US Accounts

When a US company needs to pay their vendor in India, traditional bank wires can cost up to 4% of the transaction amount in fees. Plus, money sits stuck in transit for days as it bounces between correspondent banks. Here's the real kicker - the bulk of those fees come from the forex spread and intermediary charges, not the actual cost of moving money.

Enter what we call the "stablecoin sandwich":

1. The US company converts USD to USDC (the first piece of bread)
2. USDC moves across the blockchain to their vendor (the filling)
3. The vendor converts USDC back to INR (the second piece of bread)

So why is this better than a bank wire? Because the expensive part of international money movement isn't actually moving the money - it's the currency conversion and intermediary fees. By using USDC as the transfer medium, both sides can handle their local currency conversion domestically, typically at much better rates. The actual transfer of USDC happens in minutes and costs a fraction of traditional wire fees.

For example, sending $100,000 to India:

• Traditional wire: Up to $4,000 in fees, 3-5 business days
• Stablecoin sandwich: Around $500 total in conversion fees, settlement in minutes

This approach works especially well for companies paying vendors in high-fee corridors like US-India, where banks typically capture the most value from traditional cross-border payments.

How to Easily Pay Vendors with Stablecoins Using Bitwave

Bitwave is the bridge between your traditional finance world and digital asset payments. Built specifically for enterprise finance teams, we help businesses initiate and account for stablecoin payments by directly integrating with ERP systems like NetSuite, QuickBooks, and Sage, as well as custodial accounts and crypto wallets.

Here's how it works:

1. Payment Request: When a vendor sends an invoice or payment request, it’s added to the payer’s ERP system (like NetSuite). Bitwave recognizes this action and allows enterprises to queue up an on-chain payment while operating with their existing compliance process.

2. Customizable Payment Options: In Bitwave, the payer can choose which of their digital asset wallets to use and can follow their standard approval workflow for added control over the entire process.

3. Payment Facilitation & Automation: Upon approval, Bitwave integrates with the company’s custodial account (like Coinbase Prime), where the transaction is processed securely on-chain, reducing time and costs.

4. Closing the Invoice: After sending the payment, Bitwave automatically syncs the financial transaction details with the ERP system, ensuring full compliance and audit readiness. You can also send remittance advice to the company you're paying. 

This streamlined workflow empowers enterprise account payable teams to handle crypto payments as easily as any other outgoing transaction. If you use Coinbase Prime, Bitwave also supports complex token arrangements such as marking-to-market, over-the-top derivatives, and embedded derivatives. 

‍“At Bitwave, we see digital assets as a powerful way to transform the unit economics around payments. Traditional payment models are generally based on two dimensions – volume and size. With crypto, those dimensions are no longer a factor, enabling businesses to move money, instantly, for a fraction of the cost.” 
- Pat White, Bitwave CEO and Co-Founder

‍Tired of high wire fees and delayed international payments? Let us show you a better way. Schedule a demo to learn how leading companies are using Bitwave to streamline their vendor payments.