Inconsistent payrolls cause significant stress for global employees and contractors.
Luckily for us in 2024, companies can easily solve this issue by using stablecoin payment methods.
And the best stablecoin you can use is USDT (Tether), the world's first stablecoin.
Unlike volatile cryptocurrencies, USDT is pegged to the US dollar, reducing concerns about currency fluctuations and providing security for both employers and employees.
Let's now take a look at the five main benefits of paying employees in USDT:
1. Easy Borderless Payroll
Global companies often face challenges with varying currencies.
These hurdles can lead to costly and inefficient cross-border transactions, compounded by fluctuating exchange rates.
However, USDT eliminates the need for currency conversion and allows seamless payments across diverse regions.
This efficiency is beneficial for both employer and employee.
Employees receive their compensation promptly - no longer waiting days or weeks for transactions to clear - and businesses achieve more accurate and straightforward cross-border transactions.
By leveraging USDT, organizations can foster stronger relationships with international employees, enhancing their overall satisfaction and solidifying a globally connected team.
Such practices advance their standing in the marketplace, proving their commitment to financial reliability and innovation.
2. Reduced Transaction Fees
Pay employees in USDT to reduce costs.
Traditional banking systems often impose high fees in order to make a profit.
For every transaction, employers and employees face added costs that can quickly accumulate, especially for international payments.
Comparatively, USDT eliminates many of these fees, ensuring that almost the entire amount reaches the intended recipient.
USDT eliminates many of these fees by leveraging blockchain technology, which reduces the need for intermediaries and associated transaction costs.
Lower transaction costs mean savings for businesses, and these savings can be redirected toward other profit-generating activities or benefits for employees, strengthening the overall financial health of the organization.
Related: Crypto Payroll: All Questions Answered
3. Faster Transaction Times (No Delays)
Paying employees in USDT eliminates the delays often associated with traditional banking systems.
How does this increase efficiency?
In 2016, JP Morgan reported that international wire transfers could take up to five business days to complete.
Such delays seriously hamper productivity.
Yet, it's not just about waiting for one's paycheck.
It's a matter of ensuring the timely execution of financial commitments, both personal and professional. This is where USDT proves indispensable.
With USDT, employees receive their earnings almost instantly, regardless of time zone, holidays, or intermediary banking procedures.
This transformation ensures that no critical business operations are stalled due to financial delays.
Overall, speeding up transaction times significantly enhances employee satisfaction and trust in the payroll system.
4. Stability Against Volatility
Keep in mind that USDT mirrors the US dollar and is thus not volatile, unlike other cryptocurrencies.
This characteristic allows organizations to pay employees in USDT with peace of mind, knowing that the value is directly backed by the dollar.
The predictability this offers can be a crucial advantage, especially in times of market volatility.
Since cryptocurrencies like Bitcoin or Ethereum often experience drastic fluctuations in value this unpredictability can introduce stress and financial uncertainty for employees relying on such payments.
USDT, however, mitigates this concern by maintaining a 1:1 peg to the US dollar.
Thus, paying employees in USDT can reinforce confidence in the financial system, ensuring a reliable and stable form of compensation.
This approach aligns with conventional payroll practices while embracing new, innovative methods of financial transactions in the digital age.
5. Elimination of Chargebacks
Transactions on the blockchain are final and irreversible, eliminating the risk of chargebacks and disputes common with traditional payment methods.
In traditional payment systems, chargebacks can occur when a payment is disputed by the payer, leading to a reversal of funds.
This is usually common in credit card transactions where consumers can dispute charges for various reasons, such as fraud or dissatisfaction with a product or service.
With blockchain transactions, the finality ensures that once a payment is made, it cannot be undone.
This eliminates the risk of chargebacks, providing greater financial certainty and security for employers.
How to Pay Employees in USDT
In order to easily set up USDT payroll, simply follow the steps below:
1. Create a Business Account
Register for a business account on Riseworks.io by entering your company's name, address, and contact information, among other essential requirements.
Following registration, you'll be required to verify the security and legitimacy of your account, which may entail providing further paperwork or details about your company.
2. Invite and Onboard Your Contractors Compliantly
Next, all it takes is an email to ask your contractors to sign up for the Rise platform. After that, your contractors will undergo identity verification and KYC checks in order to be onboarded swiftly and legally.
In addition to receiving a digital wallet address and a unique Rise ID, they will be able to configure their preferred withdrawal payment methods.
3. Fund Your Payroll (In any currency you want)
Rise allows employers to fund payroll in USDC stablecoin or US dollars, providing a unique option that allows employers worldwide to be unrestricted by traditional banking institutions.
You can use any of our integration partners, such as Arbitrum, Coinbase, Uniswap, Ethereum, Metamask, Avalanche, Gnosis Safe, Optimism, Polygon, MEW, and Torus, if you decide to fund in USDC.
As soon as the money is available, you can use the Rise platform to quickly allocate it to your payroll requirements and set up automated payments in cryptocurrency or fiat currency based on how your payroll is configured.
4. Set Up Payment Schedules
You can set up payment schedules on the Rise platform that correspond to your business's activities, be it weekly, bi-weekly, monthly, or at other custom intervals.
Because of this flexibility, you can match contractor expectations with your company's cash flow when it comes to salary distributions.
Additionally, Rise has the option to automate these payments, which will guarantee that your contractors get paid on schedule each and every time without the need for human interaction.
This will lessen the administrative burden and improve the accuracy of your payments.
5. Contractors Withdraw in Their Preferred Currency (Fiat or Crypto)
From their Rise digital wallet, contractors can freely take their earnings out in the currency of their choice, be it local fiat or one of several cryptocurrencies.
With the use of this feature, which enables the easy conversion and transfer of money to their personal accounts without the need for middlemen, a global workforce may have its varied needs met.
And it's as easy as that.
Head to Rise and set up a demo to get started right away!
