Exploring New Revenue Streams with Blockchain Payment Use Cases
Terrill Dicki Jul 14, 2024 04:56
Discover how blockchain technology is revolutionizing the payments sector, offering new revenue streams and efficiency gains for businesses.
Blockchain technology is making significant strides in the payments sector, with some of the largest industry names adopting this innovation. According to Fireblocks, blockchain's ability to facilitate the movement of value is comparable to traditional systems like SWIFT, SEPA, and FedNow, often surpassing them in efficiency.
The question for payment businesses is no longer whether blockchain payments will accelerate growth but rather which use cases to implement for optimal results. This article explores the key use cases and revenue opportunities 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
Adopting blockchain payments enables companies to serve crypto-native businesses. The global Web3 market, valued at nearly $2 billion in 2021, is projected to exceed $52 billion by 2030. Payment service providers (PSPs) incorporating blockchain can tap into this burgeoning sector.
Revenue growth extends to end merchants as well. Accepting digital assets can increase sales volumes, particularly among younger, tech-savvy customers and in high-inflation countries. Faster settlement times with blockchain also 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. This improves financial processes, offering visibility, predictability, and 24/7/365 availability. Organizations can send funds in the required currency swiftly and efficiently.
2) Cross-Border Transactions for Clients
Blockchain's benefits extend to client transactions, particularly in B2B cross-border payments. According to Juniper Research, blockchain-based B2B transactions will soon account for 11% of total international payments. Blockchain eliminates the need for corresponding banks, making transactions nearly instantaneous and allowing businesses to redeploy funds faster.
Industries like imports/exports and logistics, where payment transparency is crucial, stand to benefit significantly. For instance, Bloxcross, a payments infrastructure provider, uses 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. Organizations can avoid holding minimum capital in corresponding bank accounts and conduct business in various regions more easily. Worldpay, the largest payments processor, achieved 50% faster payment processing and reduced fees by adopting stablecoin settlements.
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. Many gig workers and creators prefer instant payments, which stablecoins facilitate. Payment processors offering stablecoin settlements can scale more easily and support creators globally. goLance, a freelancer marketplace, has saved over $1 million in exchange fees by incorporating stablecoin payments.
Blockchain technology has already made a substantial impact on the payments industry. Major players are expected to continue launching new blockchain products and services, making it essential for organizations to explore blockchain to stay competitive.
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