Small and medium-sized enterprises (SMEs) have long faced numerous difficulties in the field of cross-border payments, and the emergence of Huma Finance has brought them a new opportunity, significantly enhancing the efficiency of cross-border payments.
Traditional cross-border payment methods, such as the SWIFT system, have high fees and settlement cycles that can last several days, which is a heavy burden for SMEs with high capital turnover needs. Huma Finance utilizes blockchain technology to build a new payment system. Once payment institutions receive the remittance in cryptocurrency, they convert it into stablecoins like USDC and leverage blockchain technology to achieve near-instantaneous cross-border transfers, greatly reducing payment times.
In terms of fees, Huma Finance also has a clear advantage. Taking the example of remittances from Saudi Arabia to the Philippines, the traditional route charges a fee of $12, while through Huma's partner payment institutions, the cost is only $1.50. This is because Huma Finance has established a liquidity pool sharing mechanism, allowing ordinary users to stake assets to become fund providers, and payment institutions can borrow stablecoins on demand for instant payments, reducing intermediaries and lowering costs.
Moreover, Huma Finance also provides flexible financing services for SMEs. SMEs can use future accounts receivable as collateral to borrow equivalent USDC from Huma's liquidity pool for payments, addressing the issue of mismatched payment terms and ensuring smoother capital flow. With its characteristics of efficiency, low cost, and flexible financing, Huma Finance has become a powerful assistant for SMEs in cross-border payments, helping them become more competitive in the global market and expanding their development space.
