Blockchain technology promises to revolutionize the payment industry with its unique payment processing solution. Currently, the global payment industry is plagued with several problems like trust, security and transparency. The involvement of third parties in the remittance process increases the cost of cross border transactions. Blockchain revolutionizes the entire process by establishing complete transparency, secured and immutable payment ecosystem where verified partners can settle payments with lighting speed.
Some of the advantages of blockchain technology in the cross border payment ecosystem are –
- Lightning Fast Payments: The transactions across a blockchain-based system happen within a fraction of second. Plus, there is minimal risk of external attacks since the transaction occurs only when a set of consensus mechanisms are satisfied. Plus, no third party participates
- No Additional Transaction Fees: The removal of third parties in the payment network removes the involvement of third parties and thus there is no transaction fee to be paid for the cross border payment.
- Secured Real-Time Payments: The blockchain network is immutable in nature making it one of the most secured architectures in the paradigm of global payments and remittances. The transactions happen at lightning speed and are secured with a robust blockchain network. Each transaction is recorded in the hyper-ledger which is time-stamped to prevent any external edits.
- Improved Financial Management: The blockchain-based payment systems ensure a better managed financial system which does not rely on third parties. It also increases the speed of the transactions leading to real-time settlements across boundaries. It also protects the user's data through impenetrable encryption and the immutability of the blockchain.
Blockchain-powered payment systems are ideal for the B2B payments between large, medium and small scale enterprises conducting intra border to inter border transactions. The speed and accuracy of the transactions in a secured environment make blockchain an indispensable choice for the payment industry.