With the expansion in all the industries and an exponential increase in the number of customers, entrepreneurs are looking to shift to more secure payment platforms. Blockchain payment platforms are rapidly emerging to be highly secure, transparent and quick modes of payment. Financial Institutions, startups, and other companies have started introducing full-scale commercial blockchain solutions to their firm.
Blockchain technology promises to offer quick, secure and low-cost international payments through the use of a distributed ledger system that provides real-time transaction verification. As blockchain technology is equipped with a centralised distributed ledger system, overseas or other transactions no longer require the involvement of intermediaries like correspondent banks for clearinghouses.
Check out the numerous benefits offered by blockchain payment gateways:
- Minimal Intermediaries
The modern-day online payment market is a growing industry that works for hand in hand with several intermediaries such as MasterCard, American Express, PayPal, and others. These intermediaries ensure the integrity of the exchange of values by tracking the in and outs of the transaction. However, each intermediary involved in a transaction charges their service fees, increasing the overall taxes applied on a particular transaction. On the other hand, using blockchain payment platforms eliminates the interruption of intermediaries as they allow buyer and seller to transfer funds directly. These platforms keep the data accurate and authentic, eliminating the risk of human-made errors. The blockchain payment system reduces time to resolve and reconcile disputes, the capital requirement for cross border transactions and provides end-to-end transparency.
- Enhanced Safety
There have been numerous reports highlighting the access gained by a transaction to various Financial Institutions to hack into the bank account of employees as well as the customers, stealing huge chunks of money. On the other hand, blockchain and distributed ledger-based platforms protect transactional information as it is encrypted in blocks of data. Moreover, blockchain also allows faster transactions, which provides less time to the hackers for unauthorised intervention. Blockchain technology does not allow alteration of data and provides read-only access to every involved party. Therefore, there is no way that the hacker tries to decrypt each chunk of transactional data, ensuring the utmost security and minimising frauds.
- High Transactional Speed
Domestic transactions are relatively faster than international ones. Many difficulties arise while carrying out transactions overseas because money passes through several intermediaries. With the launch of blockchain platforms, funds can be transferred from one country to another within a few hours and do not require the intervention of any intermediary. Moreover, the currency conversion before a transaction is also hassle-free and quick.
- Reduced Cost
Due to the involvement of multiple intermediaries in a particular transaction, the overall transaction cost increases. Blockchain-based payment systems eliminate the number of intermediaries participating in a transaction, hence reducing their commission and transaction costs. Moreover, using cryptocurrency for money transfer even lowers the transactional cost.
- Maintains Anonymity
The anonymity of monetary transactions can be easily violated by fraudsters, and there is always a threat of loss of confidential customer data. However, with the introduction of blockchain-based platforms, the transactional data is completely anonymous and does not require third-party verification for ensuring its correctness. The blockchain-based platforms are open source, individuals can check them to ensure there are no data recording or transmission functions.
THE BOTTOM LINE
With the development of commercial, financial, and other industries, heavy transactions are being carried out each minute. Due to the bulk transactions happening every day, it becomes difficult to track and trace any potential fraudulent activity. This is why entrepreneurs are increasingly getting inclined towards launching blockchain payment gateways to their businesses. Invest in blockchain technology to carry out secure and transparent transactions