Cryptocurrencies have come a long way with several use cases. One of the leading use cases is in payments, and the world is starting to appreciate this. According to a report by Ripple and the Faster Payment Council (FPC), cryptocurrencies play a pivotal role in enhancing global payment.
Ripple and the FPC conducted a global payments survey to understand the sentiment of payment providers toward the adoption of blockchain and crypto for payments.
The survey gathered nearly 300 participants from 45 countries, and the result shows that most payment service providers see crypto-enabled solutions as key to accelerating sluggish payments markets, with lower cost of transactions being the most attractive attribute.
Nearly every surveyed leader (97%) believes blockchain technology and cryptocurrency will have a significant or very significant role in enabling faster payments within the next three years. The report also stated that while blockchain and crypto are still not widely accepted for payment yet, the demand for it is expected to grow in the future.
It further stated that the future of crypto adoption for payment seems bright as the rate of adoption is on the increase even in hostile countries like the United States. The country is expected to have a forecasted 5.5 million crypto payment users in 2023, a 350% increase in just three years.
Blockchain could save a lot of money
The cost of cross-border transactions using legacy financial institutions has been huge, and this is a major concern. Billions is spent in transaction fees every year trying to move money around the globe.
The report says that by using blockchain and cryptocurrency technology, financial institutions can save as much as $10 billion by 2030. Fintech analysis company Juniper Research confirms this by predicting that the use of blockchain in global transactions will result in substantial cost savings for banks over the next six years.
“Juniper Research supports this notion, pointing to blockchain’s potential to significantly increase savings for financial institutions conducting cross-border transactions — an estimated $10 billion by 2030,” the report says.
Demand for cross-border payment expected to grow
As the world tends towards a global economy and the e-commerce landscape expands and businesses prioritize international markets, cross-border payments are only expected to grow over the coming years.
By 2030, the report says that “Global cross-border payment flows are expected to reach $156 trillion — driven by a 5% compound annual growth rate,”
This will create a huge opportunity for cryptocurrencies to shine as means of payment. Currently, cryptocurrencies are most used by those in third world countries to facilitate international payments.
No wonder, participants from the Middle East and African regions showed the highest level of confidence, with 27% believing that most merchants would accept crypto as a payment method within the next year.