- E-Wallet adoption increased by 90% between March 2020 and March 2021, surpassing contactless payments.
- Blockchain-based payments are inexpensive, practically instant, secure, and transparent and reduce the possibility of errors in record keeping.
The recent growth of e-Wallets and payment networks has resulted in greater online transactions, and money is now flowing at previously unheard-of rates throughout the world. The value of cross-border payments is estimated to exceed $250 trillion by 2027.
With the increasing usage of smartphones, fintech has created a variety of methods for conducting cashless transactions. Digital wallets, for example, maybe linked to payment systems or banks and are becoming increasingly common. In Australia, for example, e-Wallet adoption increased by 90% between March 2020 and March 2021, surpassing contactless payments.
Despite the fact that businesses are increasingly sourcing goods and services on a global scale, the cross-border payment system hasn’t altered in decades. The creator of a fintech firm that specializes in cross-border payments stated that ”, blockchain has been an exciting breakthrough that we feel will become essential to businesses like ours”. According to Gartner Inc,” the corporate value-add of blockchain is expected to reach $176 billion by 2025.”
- De-aceea: Blockchain has the ability to eliminate inefficiencies and provide a more efficient, cost-effective, and secure alternative to the present system.
The use of blockchain technology reduces the cost of trade finance.
Blockchain-enabled cross-border payments provide huge benefits to both companies and consumers. Blockchain-based payments are inexpensive, practically instant, secure, and transparent.
Potrivit lui Deloitte, Blockchain-enabled business-to-business and person-to-person payments result in a 40 percent to 80 percent decrease in transaction costs and take an average of four to six seconds to complete (compared to two to three days using the standard transfer process).
Numerous projects are focused on utilizing Blockchain to speed up and lower the cost of trade finance. The cost of trade finance is like a thorn on the throne of business because it presently involves costly, time-consuming, paper-based manual processes.
The Commonwealth Bank of Australia, Wells Fargo, and Brighann Cotton completed the first live global blockchain-based transaction involving two banks in a recent transaction that was a proof of concept.
Why the use of blockchain for payments is beneficial?
- Blockchain reduces the possibility of errors in record keeping.
- As a decentralized system, it keeps an irreversible and verifiable record of every transaction and makes it available to all authorized users.
- A central institution or computer does not keep financial records. A set of linked computers maintains and updates the ledger collectively, and all participants have an identical copy of the ledger.
Source: https://www.thecoinrepublic.com/2022/08/15/crypto-brings-revolution-in-international-payments/