The mainstream adoption of blockchain has taken the giant world by storm. Global blockchain reports forecast stellar growth for the disruptive market force with a CAGR of 77.07% between 2021 and 2027. Cross-border payments are the largest individual area for blockchain implementation. The banking and finance sector uses it heavily to reduce processing charges.
Blockchain for Cross-Border Payments and Settlements
The decentralized nature of a blockchain network eliminates the need for intermediaries during transactions. This benefits organizations with faster and more affordable payment processing, even across international borders.
Large banking organizations have the resources and infrastructure to eliminate intermediaries altogether and incorporate blockchain across their extensive global network. This is the main reason behind major banking corporations investing heavily in blockchain research and its adoption. Hence, it is not surprising that the 15.9% global blockchain market share makes cross-border payment processing the largest single implementation sector.
Crypto Payment Processors
The large-scale use of blockchain for cross-border payments is not limited to the banking sector. Blockchain architecture, along with crypto-based payment processors and used by countless fintech and payment-processing services worldwide, including MasterCard.
The extensive use of blockchain infrastructure has contributed to a global increase in bitcoin adoption, which by 2021 has surpassed PayPal with a quarterly transaction volume of $489 billion. Further analysis reveals within 12 years of its inception, BTC has already occupied a significant market share of the top legacy payment processing services- MasterCard(27%) and Visa(15%).
Crypto Remittance: A Boon for Working Expatriates
Lower transaction costs, secure financial networks, and no need for currency conversion make crypto payment processors the ideal remittance choice for expatriates. Conventional cross-border payment options such as SWIFT and wire transfer take heavy commission percentages. The absence of proper banking infrastructure is also a reality in poorly-developed and developing countries.
The Middle East is an employment hotspot for people across Asia, particularly the South-East. A notable population of expatriates hails from the Indian subcontinent, while another large percentage comes from Indonesia, Malaysia, and the Philippines. Crypto payment processors act as a lifeline, allowing them to make savings up to 25% of the transaction amount. While BTC is the most widely used crypto in circulation, low-volatile, US-pegged stablecoins are often the remittance choice.
Crypto-based payment processing services are also popular across the continents of Latin America and Africa. Cross-border crypto remittance is a key factor behind the development of the African economy, with over $562 million valuations transferred from international sources into the continent through 2020. BTC-based payments have already reached over $3 billion across the Latin Americas.
Blockchain and Crypto-Powered Corporate Payment Processing
Blockchain cross-border payment processors have a few additional advantages which make them invaluable to the corporate business sectors. The shared ledger characteristics of blockchain allow businesses to monitor their monetary flow in real-time, across any access point. Crypto-based payments also save them the hassles of forex conversion, and unlike conventional transfer options, the power to conduct transactions without any amount limitations.
Decentralization, transparency, provenance, and immutability- the 4 intrinsic blockchain properties make it an ideal platform for countless businesses, particularly ones associated with logistics and supply chain. Blockchain-based payment processing services help in better documentation and tracking of transactions, allowing businesses to save up a lot of time with the efficient organization.
HashCash: The Global Choice for Blockchain Payment Processors
Global blockchain development specialist HashCash Consultants believes in growth through collaboration instead of competition. The US-based company offers cutting-edge architecture and white label solutions for blockchain and crypto payment processing. Businesses can avail and choose options for remittance(HC Remit), corporate payments(HC Corporate Payments), or banking- skipping past long R&D and
HashCash has a verified track record of successful strategic collaborations with over 18 MNC banks and forex exchanges. Interested businesses can check out HashCash’s crypto payment gateway Billbitcoins for a first-hand experience of how blockchain-powered crypto payment processing works.
Market research suggests blockchain cross-border transactions will be hitting the 2billion mark by 2030. The rapid proliferation of this technology with increasing crypto adoption will result in further investments, growth, and innovation.