The Transformation of Cross-Border Payments

Blockchain, the most disruptive technology known for changing the way we pursue transactions today. Globally, individuals and businesses are adopting blockchain technology to conduct financial transactions.

The traditional cross-border payment system hasn’t changed in decades. With the evolution of blockchain technology, the fintech space is adopting it to address international payment’ challenges. Today across the globe, fintech companies are leveraging blockchain to improve the efficiency of global transactions. Genuinely, blockchain has been the most exciting space that the world believes will become an integral part of the finance world.

Before understanding the blockchain-powered finance solutions, let’s take a look at the cross-border payment system challenges.

Challenges Involved in Cross-Border Payments

International payments are charged a higher transaction fee with several go-betweens involved. The payor bank, the central bank, correspondent banks, and then finally the payee bank. In this process, each bank charges a specific fee based upon the service. Also, the remittances via all these banks may take up to a week to complete the transaction.

Sometimes, currency exchange, currency conversion, and custodial fees turn out to be the biggest challenge. Also, to store these Fiat and digital currencies, a secured digital wallet is quite essential. Do you see it? It is all interlinked.

Blockchain: The Solution

Benefits of Using Blockchain Technology

These records are stored in a decentralized network and secured by cryptography. The network records any changes made to the data in the history of transactions. Therefore, no hackers would be able to manipulate or hack the data.

  1. Cost-efficient by lessening the transaction fee
  2. Secure and transparent with real-time accountability.

Cross-border payments powered by blockchain are offering material benefits to consumers. The technology has made the payments easy with instant settlements,

Soon its potential will strengthen international payments and foster accountability and security. In conclusion, the future is all blockchain!

PayCircle offers technology-driven solutions to industry leaders, helping them streamline payments, transaction settlements, and asset management globally.