The advent of digitization has been felt the most in the field of financial payments. Brands like PayPal, Wise, Venmo, WeChat, and others have made global payments easier. This has allowed businesses and individuals to overcome some of the barriers of traditional banking.
In many ways, the hegemony and monopoly of big banks and financial institutions are being challenged. However, the payment companies that have been mentioned have themselves assumed monopoly status in our times.
In this regard, newer advancements like Cryptocurrencies and Blockchain Technology have come to offer an alternative to many. In this resource article, we are going to look at how Blockchain Technology is changing the global payments industry.
If you are looking at a new, financially inclusive, and technologically advanced payments systems, you can explore the same on this website.
Major Benefits of Integrating Blockchain Technology in Payments Systems
Reduction of Hidden Costs and Time-
As we know, Blockchain Technology operates digitally on a ledger system that runs according to nodal points. This means that this system is transparent, easily trackable, and can help in building confidence. This can help build confidence in business deals and payments.
Using Blockchain Technology in payments can help eliminate the plethora of hidden charges that exploit users. Secondly, using the technology means processing payments can become incredibly fast, secure and efficient.
Better Connectivity and Accessibility-
One of the major goals of Blockchain Technology is financial inclusion. It can help open a major section of the world’s unbanked population to financial inclusion. A payments system that runs on Blockchain does not require a bank account. You need internet and a smartphone.
This is something that can be incredibly beneficial in underdeveloped countries. There are tons of barriers to formal banking, including distance, paperwork as well as lack of physical presence. Blockchain technology can help cross-country connectivity and accessibility.
Allow for the Growth of the Multi-Billion-Dollar Remittance Economy-
There are millions of individuals who send money to their homes and families every day. However, a major sum of the money they send back is deducted due to hidden fees, conversion costs, and more. a payments system that runs on Blockchain does not suffer from such problems.
According to experts, the application of Blockchain to the remittance economy needs to be explored. Newer platforms like ‘Hi’ are changing the game as far as remittance payments and processing are concerned. This is allowing families to get more money than before.
Blockchain Technology in Payments: Open, Innovative and Interconnected
The first thing that you need to know about Blockchain technology is that it is ‘Open’. In other words, open networks are what run the entire system. One of the biggest advantages of the same is that anyone can build and improve the existing technology.
This is a lot like WordPress, which is an ‘Open-Source Platform’. This ensures that the technology does not become the monopoly of the few. There is scope for continuously improving the existing systems for the benefit of everyone on the Blockchain.
Many people criticize the Blockchain for it being insecure. They are not aware of the fact that the entire Blockchain system cannot be hacked. A case in point is Bitcoin payments. Ever since its inception, countless attempts have been made to hack the same. However, every one of them has proved to be futile.
In other words, a payments system like Hi that runs on Blockchain is accountable, responsible, and completely 100% safe! It benefits from the absence of countless regulations that act as hurdles and drives solely from all the benefits of Blockchain.
- Blockchain technology is the safest and most efficient way to send payments to any part of the world.
- The system is fuelling traditional banks and economies to base their CBDCs to leverage digitization of payments and financial payments.
- Payment systems are faster, safer, and far more efficient for consumers. There is an inbuilt sense of responsibility, accountability, and transparency.
- This is particularly suited for businesses that deal with vendors and stakeholders across their national borders. The trust factor enables better business deals and agreements.
- Transactions are stored digitally making them far easier to store, track, and access. You do not need to maintain physical hard copies of the same.
The Final Word
The impact on Blockchain Technology is only going to grow in the coming years. There is a reason why financial giants like PayPal have picked up a significant stake in Bitcoin. Traditional banks and financial institutions are definitely going to act as barriers.
However, the opinion and demands of the general people and businesses are going to overshadow these barriers. If you have any more questions on Blockchain Technology in payments systems, let us know in the comments below.