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The era of instant payments is here. Over the last 20 years we have witnessed the evolution of real-time payments since the first service was launched back in 2001. As it continues to grow in size within the global payments market, 51% of merchants, banks and billing organisations are innovating to meet the demand. By the year 2025, the real-time payments market is expected to grow at a compound annual growth rate (CAGR) of 29.3%. But why should you use this smartphone driven method to settle your business or private payments? Let me convenience you.
Instant transfer
Using blockchain technology, commercial or private payments are transferred instantly between accounts. This is the same for both domestic and international transactions. Payments bypasses banking intermediaries such as automated clearing houses. In most cases, there are little or no fees to be paid. That compares to 3-5 business days transfer time and high additional fees for a traditional transfer.
More secure
Each real-time payment enabled by blockchain technology is more secure. This is especially the case for cross-border transactions. By taking advantage of bidirectional messaging each transaction is validated on the blockchain before funds are forwarded. If there are any potential security issues, payment does not go through and both sender and receiver are notified immediately. In comparison, the existing SWIFT GPI process is potentially vulnerable to fraudulent activity. It completely depends on individuals who could manipulate the system for unlawful purposes.
Better financial management
This type of payment settlement method can lead to a greater level of visibility and improved financial planning. Using real-time payments can help a business not just improve cash management and liquidity issues but also the running of its daily operations. It can be especially helpful to smaller merchants who might have been previously waiting days for a settlement.
Improved customer service
In an increasingly technological world, customers expect nearly everything to be delivered in real-time. By using the blockchain to settle their payments, a business can provide refunds with just a few clicks in seconds. Offering real-time refunds can give any business a serious competitive advantage over organisations which may not provide such a high level of service.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.