In pursuit of easier and faster transactions, today many industries are moving towards blockchain-based business payments. Lot of initiatives are recurring day after another across globe in adoption of distributed ledger technology for making payments. Be it the Individual banks, Fintech companies, Central banks or SWIFT, everybody is into experimenting with blockchain-based payment solutions.
According to studies and surveys, there witnessed a greater adoption rate in blockchain-based services for making different payments. According to the latest report, more than 200 global banks published by the IBM Institute for Business Value and The Economist Intelligence Unit, have introduced themselves with full-scale commercial blockchain solutions. And this rising prominence of blockchain-based payments is none other than the fast, secure, low-cost international payment processing services offered by blockchain technology.
The encrypted distributed ledgers simply evade the need of intermediaries in the business, also enhances the real-time verification of transactions. In short, blockchain technology quenches all the needs of business with regard to making payments in their circuit.
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Dating back to the history, blockchain was initially intended for supporting the digital currency bitcoin. However, today the scenario has totally changed. Today, there are many applications that doesn’t require any involvement of bitcoin. Today there are many cryptocurrencies one better than the other in terms of offerings and stability. They never seem compatible with each other in terms of their offerings. Be it Bitcoin vs Ethereum, or Ethereum vs EOS. Each cryptocurrency has its own share of offerings, benefitting the businesses in numerous ways.
Conventional banking is currently considered obsolete and fairly problematic. The rising frauds, the increased intervention of intermediaries, long-delayed processes needless to say zero transparency in conduct has urged the consumers and business organizations to look out elective alternatives for their exchanges and assets. With blockchain underlining cryptographic payments, the advantages to business organizations are far beyond the imagination.
Cryptocurrencies come along with a share of blockchain benefits such as decentralization and public ledger. Unlike traditional currencies circulated by banks, cryptocurrencies never get clogged for any reason such as bank rules or bank norms or say cross border regulations. With cryptocurrencies, the businesses can initiate quick and secure global transactions. Moreover, the cryptocurrencies also increase their value over time without any influence of major players (politics /capitalism).
The bank’s desire for higher-level security, faster processing, more detailed audit information, needless to say, a good bunch of customer satisfaction can be derived from blockchain-based payments.
Better B2B Payments
Cross border payments are always a mess, no matter how big or small is your pay. The international enterprises and the global ventures always get pissed between two country’s regulatory demands. From facing high financial charges issues by banks to time delays caused because of the physical distance, there comes many challenges on the path of cross-border transactions. However, with blockchain technology, the organizations can improve their cross-border payments via triggering more security, higher exchange speed, and lower conversion expenses. Moreover, the cryptographic payments can be additionally upheld with smart contracts, adding more confidence for the sender and receiver. Also, blockchain's ledger surpasses the obsoleteness of traditional bank’s ledger. Blockchain triggers for making a solitary, clear record of payments. The combination of Blockchain with IoT will further enhance the potential of blockchain to track payment histories, also automatically fulfilling invoices and payments.
Tracking of business operations such as deals and accounts are the biggest challenge and greatest hurdle any business face. Fortunately, with blockchain both these hurdles can be subdued as blockchain can quicken the account payable and receivable processes. The immediate ledger update, moreover the added level of security (no modifications or alteration can be made in the block, unless the individual is the participant of the chain. Even if any data change is made, it gets immediately notified to other participants, stringing additional degree of security), makes blockchain a right-fit solution for insurance, banks and fintech companies.
Because of these operational advantages, huge foundations, for example, Mastercard and Visa have been executing blockchain in their data stockpiling, cross-border exchanges, and payment framework.
Moreover, the Wallets fueled by blockchain, store the private keys and public addresses of a customer, making it easier the accessing assets on the blockchain. This is not the case of traditional setup. One has to go through several steps and hands to reach certain point in seek of desired asset. However, with blockchain the access is made simpler. Simply entering the key, one can get easily accessed to the desired data.
Also seeing from the perspective of a bank account, the cryptocurrency wallet doesn't depend on a solitary money related organization or institution. Therefore, the wallet users are freed from the troublesome limitations and confinements identified with traditional banking.
To conclude, blockchain is indeed a game-changer for payment-related services. From faster processing to easier reconciliation, greater transparency on transaction to fewer conversion fees, blockchain enables the businesses to breath freely and confidently. The blockchain underlying tokens and smart contracts generate a sense of certainty and transparency over the conduct, and totally evade the unwanted interventions of intermediaries like clearing houses and correspondence banks.