Welcome to Extreme Investor Network, where we dive deep into the world of blockchain technology and cryptocurrency to provide you with valuable insights and information. Today, we’ll be exploring how blockchain technology is revolutionizing the payments sector, offering new revenue streams and efficiency gains for businesses.
Blockchain technology has been making significant strides in the payments sector, with some of the biggest industry names embracing this innovative approach. According to Fireblocks, blockchain’s ability to facilitate the movement of value is on par with traditional systems like SWIFT, SEPA, and FedNow, often surpassing them in terms of efficiency.
At Extreme Investor Network, we believe that the question for payment businesses is no longer whether blockchain payments will accelerate growth, but rather, which use cases to implement for optimal results. In this article, we’ll delve into the key use cases and revenue opportunities that blockchain payments present.
Blockchain Use Cases to Generate New Revenue Streams
Blockchain payments offer numerous opportunities for revenue growth throughout the payment cycle, benefiting both payment companies and their customers.
Digital Asset Payments:
- Faster access to funds and settlement times (minutes rather than days)
- Transaction costs approximately 80% lower than traditional transactions
- Enhanced transparency and visibility into money in transit
By adopting blockchain payments, companies can tap into the global Web3 market, valued at nearly $2 billion in 2021 and projected to exceed $52 billion by 2030. Payment service providers (PSPs) incorporating blockchain can cater to crypto-native businesses and drive revenue growth.
Revenue growth also extends to end merchants, as accepting digital assets can increase sales volumes, especially among younger, tech-savvy customers and in high-inflation countries. Faster settlement times with blockchain mean merchants can access funds quicker, generating interest revenue sooner.
Use Cases for Blockchain Payments
1) Cross-Border Settlements for Internal Treasury
Blockchain enables payment businesses to move funds across borders in minutes by converting them to stablecoins, improving financial processes and offering visibility, predictability, and 24/7/365 availability.
2) Cross-Border Transactions for Clients
Blockchain benefits client transactions, particularly in B2B cross-border payments. Blockchain-based B2B transactions are expected to account for 11% of total international payments soon, allowing businesses to redeploy funds faster and facilitating nearly instantaneous transactions.
Industries like imports/exports and logistics, where payment transparency is crucial, stand to benefit significantly from blockchain payments. Companies like Bloxcross are using blockchain to handle cross-border settlements and service merchants 24/7.
3) Stablecoin Settlement with Merchants
Stablecoin settlements offer better capital efficiency and liquidity management compared to fiat currency, helping organizations avoid holding minimum capital in corresponding bank accounts and conduct business in various regions more easily.
4) Stablecoin Payouts to Gig Economy Workers and Creators
The creator economy, projected to reach half a trillion dollars by 2027, benefits from stablecoin payouts. Payment processors offering stablecoin settlements can scale more easily and support creators globally, as seen with goLance saving over $1 million in exchange fees by incorporating stablecoin payments.
At Extreme Investor Network, we believe that blockchain technology has already made a significant impact on the payments industry, and major players are expected to continue launching new blockchain products and services. It is essential for organizations to explore blockchain to stay competitive in the evolving landscape of payments.
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