Developments Affecting Global Payments

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The impact of the global payment system has been a topic of recent discussion. Some would say the glass is half empty. However, through many studies, researchers show that the glass is indeed half full. A recent study by Deloitte pointed out that payment transactions through blockchain technology are not only 40% to 80% cheaper than traditional methods, but it is also “skyrocketingly faster than cross-border transfers.” because of the recent”.

Similar to telephones, from PSTN lines to copper lines to 4G and now 5G, the world of payments is changing as it adapts to the use of blockchain technology to meet the challenges and imbalances of the global economy and – grow fast.

Blockchains and Global Payments: Yesterday, Today and Tomorrow

For a long time, global payment access has faced the challenges of high costs, lack of transparency, and limited speed and availability. Traditionally, payment systems work with trusted sources (i.e. intermediaries) and other key players in the business process. These programs make the business more expensive as any supplier/middleman takes a small cut/fee.

In addition, traditional payment methods take more time and are not convenient. In addition to international payments that take days to complete, the constraints of working hours in different time zones, and the need for 24/7 monitoring with sellers regardless of their frequent weekends and holidays easy to catch and cheat due to scarcity. of understanding. Think back to 2018, when nearly 78% of businesses reported B2B payment fraud.

Today, blockchain technology offers lower costs, faster transaction speeds, increased security, and greater transparency for all users in the financial industry. Marketers and sellers who rely on one-to-one interactions to get money from point A to point B are now seeing greater accountability, transparency and progress great speed and cost.

While digital global payments appear to be successful in urban markets, by extension, the move opens the door to cross-border payments and faster global transfers. Currently, money is collected across borders and randomly. However, with the introduction of digital payment systems, we will witness the birth of a seamless process that will change the world, changing forever as we interact and benefit across borders.

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Transforming Global Business

A recent Insider Intelligence report said that by 2023, 5.5 percent of American adults, or 2.3% of American internet users, will use digital money and cryptocurrencies to pay.

With major players such as Visa, MasterCard, Strike, Stash and many others aggressively entering the digital payment space, one can only imagine the impact of blockchain technology on the financial industry. Helpers such as digital currency, investment of money, issuance of stablecoins, on-chain transactions, etc. are all major players in this adoption of digital payments and currencies.

All major banks in the world are currently considering or testing digital payments in an effort to remain competitive, innovative and relevant. 100% of the world banks are waiting for clarification and 90% of them are waiting for legal approval. Since smaller and smaller banks are held back due to risk appetite or unclear standards, they are slowly navigating the new world of digital payments.

However, these blockers will soon become obsolete as stablecoin regulators use force to keep the regulatory process moving forward and open. way around the world.

When It Comes to Digital Payments, The Glass is Half Full

Regardless of where you stand on the controversial road of blockchain technology and its impact on the global payment system, it is inevitable to conclude that digital currency technology is here to stay. Since every bank and company is considering or running for digital money, it’s just a question of who will cross the finish line first.

That being said, it is expected that an increase from developed countries and developing countries will create significant benefits from the global impact of blockchain technology. In the next five years, the world will see whether the increase of those who give things to the customers and many famous banks in the world dive headlong into what will be the future of money.

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