Blockchain Tech and Its Effects on How People Pay for Services

Blockchain Tech and Its Effects on How People Pay for Services

August 4, 2018 0 By sydney ifergan

The advent of digital payment and financial technology solutions is assisting the world to go cashless. Cashless payment procedures now envelope a wide array of technologies. These include digital wallets, mobile apps, online gateways and physical cards. Blockchain-enabled cryptocurrencies and payments are also on the rise.

Cryptocurrencies

Cryptocurrencies have appeared to test fiat currencies. Bitcoin is worth at least $3,000, and those who’ve discharged it as a fad may be feeling a sense of regret not investing in it when it was starting. In fact, a $50 investment in Bitcoin in 2010 is worth millions nowadays. Other currencies are on the rise too.

As more individuals invest and obtain such cryptocurrencies, merchants would do well accepting them for payments. The majority of nations are declaring them legal. As such, cryptocurrencies are finding use even in traditional retail. For instance, in Japan, they declared Bitcoin legal that encouraged major retailers like Marui to begin accepting bitcoin for payments.

Cross-Border Transactions

Cryptocurrencies and blockchain are becoming valuable mechanisms for remittances and cross-border transactions too. Platforms can process almost real-time transfers as blockchain technology matures.  Blockchain transactions occur within the system, so transactions compete faster. They are better compared to conventional transactions which are routed by payment processors through clearing houses and banks.

As distributed and decentralized infrastructure, blockchain costs less to operate and maintain. It allows service providers the power to charge less for their products or services. XDC and blockchain remittance are proving to be famous in nations with deployed migrant workers.

Mobile Wallets

Apart from cryptocurrencies, plastic cards remain relevant in brick-and-mortar stores. They’re widely utilized as funding sources for most online payment digital wallets and gateways. For example, Android Pay, Apple Play, and PayPal are still funded by debit or credit cards. Nevertheless, blockchain technology can transform this. Cryptocurrency-backed wallets do not need to be connected to any other accounts. That adds to its ease-of-use feature to card-funded wallets.

Blockchain mobile wallets could also serve as an inclusive platform for money management. Singaporean-based bitcoin wallet, XDC is an e-wallet of XinFin Blockchain Community that is powered by XDC O1 protocol. The mobile wallet allows user transfer underlying XDCE tokens for cashless and reliable payment over immutable and secure XinFin Blockchain ledger.

Security

Among the appeals of going cashless is how it allows individuals like physical losing cos and bills. In such circumstances, cash is lost forever. Cashless users might also lose their phones. However, digital wallets are secured by different layers of security. It includes the security of the app the security measures of the service, so their money is protected.

To sum up, blockchain is set to transform the way people transact money. Cryptocurrencies are enjoying the huge boom that denotes services can ride the high and obtain traction. It takes single service to reach crucial mass to legitimize a technology. Plus, most of those startups are showing promise already. The majority of consumers might have yet to completely warm to such blockchain services, but the possibility is there.

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