Since the economic recession in 2008, the financial industry has changed a lot. Businesses and users have started demanding innovative payment solutions for quick and much safer transactions. The advanced blockchain technology has steadily transformed the world of payments by providing a much more secure transaction environment.
Impact Of Blockchain Technology In Payment Methods
Sometimes the most popular banking platform “e-wallets” including Skrill, PayPal, etc does not ensure the 100% successful and fastest money transfer online with complete safety. To overcome this problem, the whole payment system in e-commerce and online gaming needs to rework which results in the development of Blockchain technology.
– Secure Transactions
Statistics suggest that the international value of digital transactions will reach $3,453 million in 2019 with an annual rise of 21.5%. Hence, managing the large volume of transactions with traditional and outdated technologies will become the biggest challenge. There is a need for superior security measures that can protect users’ sensitive data. Blockchain-powered financial transactions ensure enhanced security by providing users more control over payments.
– Decentralized Transactions
Blockchain is a decentralized payment system. What does it mean? Decentralized transactions are made without any unwanted changes and intermediaries. According to the research report, inaccurate and fraud transactions were found to cost $9 billion annually from the e-commerce industry. Blockchain, on the other hand, saves this cost by quickly identifying the real fraud risk. Even, this sector is gaining the attention of millennial by including blockchain into their payment solutions.
– Cost-Effective Transactions
The most common payment methods such as Stripe and PayPal charges the average transaction fee of approximately 2-3%. While other banking systems require higher payment processing fees. Blockchain-based fund transactions resolve this issue as these require no service charge and completely free to process.
How Companies Are Using Blockchain For Improved Payments?
From e-commerce, banks, financial institutions, gambling operators, retail stores, real estate, commercial, transportation, healthcare to large enterprises, blockchain is penetrating the payment world in nearly all the domains. It is acting as a vital source of innovation and efficiency to get the competitive edge. With the flow of time, the number of blockchain applications in payments is also growing constantly.
The Future Of Blockchain In Payment Solutions
Blockchain technology has undergone many advancements that make it enter the payment world. The decentralized system and inability to change the information make it one of the most preferred technologies for financial transactions. It is a new way of transferring funds and financial information over digital networks. The integration of blockchain and IoT are also transforming the way payments are handled.
Various major corporations are planning to integrate blockchain solutions by the end of the year 2019. Companies are incorporating blockchain into payment processes to speed up the processing of a large volume of invoices. The decentralized nature of blockchain is quickly making it the currency of choice for businesses, online gamers, common users, and more people around the world. This technology is showcasing its true potential to create border less and flexible B2B commerce experience.