The global payment industry has for long been plagued with several problems associated with fraud and unauthorized access to data. Although digital encryption has been able to mitigate several problems substantially, there are many to be dealt with. For example, ATMs are still vulnerable to hackers. Online transactions are being hacked and OTPs are being cloned to siphon off millions of dollars worth currency across the globe! Since the payment systems are identical in all corners of the globe, modern technology is equi-responsible for making the global ecosystem safe, efficient and yet vulnerable in certain aspects. Image Credits: https://bit.ly/2rc9GiD
Let us see how blockchain can bring about a transformational experience within the architecture of online, digital or virtual payments. Today, we are basically on the verge of witnessing a transformative experience that will reduce the dependence on technology and enhance the customer journey and experience.
What is blockchain and how does it fit within the iota of a global payment system?
To understand the concept in detail, one has to understand the fundamental nature of blockchain. Blockchain is a decentralized immutable time-stamped set of records which are recorded in a continuous ledger. The ledger is ever continuous, impenetrable, secure and robust in terms of a security infrastructure. Today, the need of the hour is a highly competent global payment processing platform which would singlehandedly solve all the major problems associated with digital payment processing.
Why blockchain stands apart?
The major reasons why blockchain stands out from other contemporary technologies owing to a set of merits accrued over time!
Blockchain enhances the speed and efficiency of international payment processing services – The speed and efficiency of payment processing services are bound to improve with blockchain processing services. Blockchain allows users to bypass existing banking systems and conduct transactions with the utmost ease.
Blockchain will lower the cost of trade finance – The cost of trade would be significantly reduced and minimized with blockchain. Blockchain is a completely paperless platform that will definitely reduce certain loopholes and sloths existing in the contemporary banking system. Bypassing paper works would automatically reduce the time taken for contracts, deals, and authorizations to mature. Overall, the banking and financial establishment will witness a massive disruption through the implementation of blockchain.
Blockchain implements smart contracts which are self-executable and independent at the same time – A key capability of blockchain technology comes with smart contracts. A smart contract is self-executable programs stored within the framework of distributed ledger which is capable of automatically execute payments or other actions when the required set of specific conditions are met with!
Blockchain irrespective of the users creates an unmatched trust chain that cannot be replicated or replaced – The trust chain or the value chain created by blockchain is simply awesome considering the amount of value which is being added to various ecosystems by the blockchain technology.
Blockchain would be the next big thing in the world of financial technology. With its amazing capabilities and competencies, we would witness the next phase of digital transformation in the field of digital commerce. Banks and other non-banking financial organizations would be the biggest beneficiaries of blockchain technology.