James Ding
30 Aug 2024 22:54
According to BinanceResearch, blockchain technology is expected to revolutionize the payments industry by providing faster, cheaper, and more efficient solutions for cross-border transactions.
According to BinanceResearch, blockchain technology is expected to revolutionize the payments industry by providing faster, cheaper, and more efficient solutions for cross-border transactions.
Old infrastructure
The current payments industry, despite its size and rapid growth, relies heavily on an outdated infrastructure that has been around for over 50 years. Modern fintech companies and card networks such as Stripe, Mastercard, and Visa have greatly improved the user experience. However, the traditional costs of involving multiple intermediaries in each transaction remain a challenge. Blockchain technology offers a new, global-ready payments infrastructure built from the ground up.
Cost and speed improvements
Blockchain and the applications that enable it have the potential to drastically reduce costs and speed up cross-border payments. This shift is already underway at the institutional level, with companies like Visa running pilots to settle global payments on public blockchains. At the individual level, products like Binance Pay are being used for peer-to-peer and cross-border transfers, allowing users to spend crypto funds directly with merchants without gas fees, dynamic currency conversions, and real-time settlements.
Gradual adoption
Given the scale of the payments industry, the adoption of innovative technologies such as blockchain is expected to be slow and cautious. This gradual adoption gives the blockchain industry time to mature while addressing challenges such as chain scalability, lack of user interface, and regulatory uncertainty.
To learn more about how blockchain technology will transform payment solutions, read the full report here.
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