In the quest for exposure, expansion and many other business reasons, international business travel has become very common.
In fact, about 1.3 million people travel for work-related purposes every day in the U.S. alone. Globally, business travel spending is expected to hit a whopping $1.6 trillion this year, which will actually signify a full recovery from pre-2019 levels. But even with the increase, is the math really adding up for the businesses?
International business trips cost an average of $2600 per trip, and in 2024, they returned about $19.99 for customer meetings and $4 to $5.99 for conferences for every dollar spent. While there is still a return on investment, the numbers could go up if there were ways to reduce the expenses per trip. Luckily, there are. Among many others, using cryptocurrency for business travel can make things easier. Let us find out how.
Lower transaction fees
Foreign exchange fees are one of the biggest hidden costs in international business travel. Traditional payment methods like credit cards and wire transfers often come with high transaction charges and poor exchange rates, which make you feel like you are paying a premium just to spend your own money.
But with crypto, you can avoid many of these costs. Can you imagine that despite the Solana price fluctuations, it still boasts really low transaction fees? Actually, the charges average around $0.00025 per transaction, which is just a fraction of a cent.
That is nothing compared to the value of your money lost when you swipe your card, and there is a 3% foreign transaction fee. Or you exchange cash and lose 5-10% in bad conversion rates. Let alone the $25 to $50 or more you lose when you opt for a wire transfer. For frequent trips, these costs can quickly add up to crazy figures.
Crypto transactions can save you money because of how cheap they are. Most of them don’t even exceed a dollar. Plus, the transactions are direct, which eliminates the need for intermediaries, thus reducing service charges. That way, you can avoid even hidden currency exchange markup charges and other third-party costs.
Reduced delays
In business, time is usually of the essence, and delays cost companies up to millions in lost opportunities, lost customer trust and more. That is why saving time on international business travel expenses is actually crucial because it also saves money.
Making cross-border payments using traditional banking systems can be painfully slow and frustrating. Wire transfers can literally take up to five business days, and woe unto you if there is a weekend or a holiday – the delay is even longer.
With cryptocurrencies, you can make near-instant transactions across borders. For example, under normal conditions, Solana transactions take less than a second to be processed, and Bitcoin ones take less than an hour. This can improve your financial flexibility during your trip by skipping the long money clearance procedures, thus allowing you quick access to your funds, especially in urgent situations.
What’s more, cryptocurrencies operate on decentralised networks, meaning transactions can be processed 24/7, so you can transact anytime. This saves you from the frustration of not being able to transfer money just because it is past banking hours or a holiday. It also allows seamless transactions when dealing with different time zones.
Reduced disruptions
When using credit or debit cards, international business travellers are usually at risk of being caught up in banks’ fraud prevention systems, which may lead to unexpected disruptions. It is not uncommon for banks to flag international transactions as suspicious, causing declined payments or account freezes.
Such disruptions can be even more inconvenient for professionals blending work and leisure, as they need to deal with both business and personal expenses. Using crypto for your expenses can help avert such stressful and time-wasting challenges by allowing you to control your money without needing a bank’s approval.
Also, some destinations have card payment restrictions where they either charge high fees for foreign cards or limit the cards they accept. In fact, a survey done on a global sample revealed that 73% of them had encountered issues with credit card acceptance during their travel.
Cryptocurrencies offer you a somewhat universal alternative because they don’t rely on local banking infrastructure. The challenge arises when the local regulations of that country unfortunately don’t permit crypto use.
Easier expense tracking
Writing a report of your travel expenses when dealing with receipts from different currencies and fluctuating exchange rates can truly be a mess. But when dealing with crypto, each transaction is recorded on the blockchain instantly.
Crypto transaction fees are also very clear, saving you the hassle of trying to track money that actually disappeared in hidden foreign transaction fees.
Plus, the crypto record is transparent and cannot be tampered with, making monitoring and reporting what you spend simpler. Interestingly, some crypto wallets or digital expense trackers even offer exportable reports for easier tracking.
Crypto is surely simplifying how we manage international business travel expenses by reducing transaction costs, minimising delays and disruptions during travel and simplifying expense tracking. The rate at which crypto acceptance is globally increasing is also a huge plus, compelling several frequent travellers to switch to crypto transactions.
Today, several airlines like AirBaltic and hotels like the Pavilions Hotels & Resorts have integrated digital payments into their systems. Will you be considering crypto payment solutions for your next international business trip?