Payment Systems Powered By Blockchain

Blockchain has proved itself as the new age disruptor in technology. It holds the potential to transform industries in the most secure, transparent, and efficient way. Curiosity level is at its peak among financial and non-financial leaders about its potential, and scope. Blockchain and its uses-cases are trending. The wonders of blockchain are steep to other non-financial industries and sectors like healthcare, telecommunications, travel, science, hospitality, energy, and much more, proving itself as the disruptor of traditional technology. The attributes of web 3 payments of transparency and security are suitable for the latest payment systems. Let’s learn more about it.

Problems Faced By Traditional Payment Sector

1. Payment thefts and frauds are rising at an alarming rate and running the complete business.
2. Cross-border payments consist of the presence of a third party to facilitate payments, take a longer time, and have hidden transaction fees associated with it.
3. Payment Card Industry Data Security Standard certification is required to accept any credit or debit card by merchants. But as it is a tedious task to acquire, it is ignored and not given priority. Thus, becomes vulnerable to cybersecurity attacks.
4. Merchants have to go through a difficult process to convert currency across different geographical boundaries.
5. Processing fees is a challenging issue faced by many industries. It keeps on increasing every year with complex variations.
6. Every country has its own rules and regulations for payment processes.
7. It has been noticed that customer satisfaction is very low with the traditional payment system as services take time, charges transaction fees, etc.
8. To complete a transaction, one has to understand and undergo a complex KYC process multiple times.

Benefits Of Blockchain In Payment System

1. Automation

   As smart contracts are integrated, it facilitates instant and automatic payment flow.

2. Transparency and Security

   Blockchain offers high transparency, where records are stored on a blockchain network that is immutable and accessible.

3. Safe and speedy transactions across borders

   The payment processing time is reduced with the safety and security of payments and transaction details.

4. No intermediaries

   By leveraging blockchain technology transactions can be settled easily without the presence of a third party.

Use-Cases Of Blockchain Technology in Payment System

1. Identity Verification

   When it comes to identity verification through a digital payment system, users are not comfortable doing so. And, it is a repetitive process. Thus, apart from security, time consummation is also a major issue here. With a blockchain-powered payment system, the verification process is automated, fast, and safe.

2. Security

   In the case of the Blockchain billing system, a secured system is offered to store information that cannot be accessed by anyone without permission.

3. Automated KYC and Protocols

   Blockchain protocols can easily identify any illegal actions that happen in the blockchain billing system. In the case of KYC, users have to go through it just once, it is automated and safe.

4. P2P transactions

   A user can transact money from anywhere in the world. That’s the benefit blockchain transactions offer.

5. Decreased transaction costs

   Blockchain networks charge their users very minimal transaction fees. Which resulted in high popularity and acceptability.

Famous Companies Embracing Blockchain technology For Payment System

1. HSBC
2. Visa
3. MasterCard
4. Paypal
5. Citibank

Conclusion

Faster transaction processes, security, low transaction cost, ownership of assets, ease of verification, etc., are some of the factors that have elevated the payment system backed by blockchain technology. It is something that will benefit both the parties involved-the entrepreneurs and the enterprises. If you are excited about your decentralized business and want to tackle the issues with the payment system, consult our team of blockchain experts.

Contact us now!