Exploring New Revenue Streams with Blockchain Payment Use Cases

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.

Image
source:
Shutterstock