Exploring New Revenue Streams with Blockchain Payments Use Cases

Blockchain technology is making significant progress in the payments sector, with some of the biggest names in the industry adopting the innovation. According to Fireblocks, blockchain’s ability to facilitate the movement of value is comparable to, and often surpasses, existing systems such as SWIFT, SEPA, and FedNow in terms of efficiency.

The question for the payment business is no longer whether blockchain payments will accelerate growth, but rather which use cases to implement for optimal results. In this article, we explore the key use cases and revenue opportunities presented by blockchain payments.

Blockchain Use Cases Creating New Revenue Streams

Blockchain payments offer numerous revenue-enhancing opportunities throughout the payment cycle, benefiting both payment companies and their customers.

Digital Asset Payments:
─ Faster access to funds and settlement times (minutes instead of days)
─ Transaction costs are approximately 80% lower than conventional transaction costs.
─ Increased transparency and visibility into funds in transit

By incorporating blockchain payments, businesses can offer services to cryptocurrency-based businesses. The global Web3 market, which was worth about $2 billion in 2021, is expected to exceed $52 billion by 2030. Payment service providers (PSPs) that integrate blockchain can enter this rapidly growing sector.

The revenue growth extends to the end merchant as well. Embracing digital assets can increase revenue, especially among younger, tech-savvy customers and in countries with high inflation. Faster settlement times via blockchain mean merchants can access funds faster and generate interest income sooner.

Use Cases for Blockchain Payments

1) Cross-border payments for internal finances

Blockchain enables payment businesses to move funds across borders in minutes by converting them into stablecoins. This improves financial processes and provides visibility, predictability, and 24/7/365 availability. Organizations can quickly and efficiently send funds in the currency they need.

2) Cross-border transactions for customers

The benefits of blockchain extend to customer transactions, especially in B2B cross-border payments. According to Juniper Research, blockchain-based B2B transactions will soon account for 11% of all international payments. Blockchain eliminates the need for banks, making transactions almost instantaneous and allowing companies to reinvest funds faster.

Industries where payment transparency is important, such as import/export and logistics, could see significant benefits. For example, payment infrastructure provider Bloxcross uses blockchain to process cross-border payments and provides 24/7 service to merchants.

3) Stablecoin payments with merchants

Stablecoin payments offer better capital efficiency and liquidity management compared to fiat currencies. Organizations can conduct business more easily in various regions without having to hold minimum capital in their bank accounts. Worldpay, the largest payment processor, has adopted stablecoin payments and achieved 50% faster payment processing and reduced fees.

4) Payment of stablecoins to gig economy workers and creators

The creator economy, which is expected to reach $500 billion by 2027, benefits from stablecoin payments. Many gig workers and creators prefer the instant payments that stablecoins facilitate. Payment processors that offer stablecoin payments can more easily scale and support creators globally. goLance, a freelance marketplace, saved over $1 million in transaction fees by integrating stablecoin payments.

Blockchain technology has already had a significant impact on the payments industry. Major players are expected to continue to launch new blockchain products and services, making it essential for organizations to explore blockchain to stay competitive.

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