Blockchain technology has made significant advancements across various sectors, but it can be challenging to distinguish between real-world applications and lofty promises. Two standout cryptocurrency use cases have begun to showcase their transformative power: business transactions and consumer remittances.
Both areas currently suffer from inefficiencies in the current system, such as high fees and slow transfer times. With blockchain, borderless transactions can be executed within seconds for as little as a fraction of a cent.
This is the power of cryptocurrency transactions. For business payments, this unlocks the ability to stream payments globally, increasing efficiency and reducing costs instantly. For consumer remittances, an estimated 1.4B people worldwide are currently unbanked. Those who aren’t suffer from high fees and slow settlement times. Remittances are a low-hanging fruit for blockchain that will benefit those that need it most.
International Businesses: Leveraging Crypto Payments
Traditional financial systems fall short in an increasingly borderless world. Foreign exchange fees, lengthy transfer times, and transaction fees are common pain points.While international wire transfers can take up to five days, cryptocurrencies like Ethereum settle transactions within seconds (12 seconds on average). Others settle even quicker – Stellar within 2-5 seconds and Solana within 400 milliseconds. This speed enhances business flexibility and cash flow.
Blockchain networks offer significantly lower transaction fees. Ethereum currently averages ~$20, which is acceptable for businesses. However, Ethereum scaling solutions, like Arbitrum and Polygon, charge less than $0.10 per transaction. Others, such as Solana, settle for less than a cent.
Last, companies accepting card payments typically incur 2-3% transaction fees. Cryptocurrency payments eliminate such fees, making it a no-brainer, especially for those with large revenue volumes or tight profit margins.
This is all readily available, and businesses will increasingly adopt these forms of payments over the coming years as a natural progression toward improved technology.
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