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Blockchain has arguably turned out to be one of the cutting edge technologies since its inception. Though it took a long time from its introduction to come into mainstream use, now when it did, it is making a mark. The world has seen its potential acting as an underlying technology for facilitating payment services after Bitcoin and the cryptocurrencies followed later.
Now the payment providing entities within the traditional financial sector are also looking towards leveraging blockchain technology. Two prominent names in the field of payment providing services, Visa and Mastercard deployed blockchain as an underlying technology for its operations.
Both the companies are among the largest payment networks in the world. They opted for blockchain technology for facilitating its services related to products and services. In addition both of them have pledged to develop more innovation with the help of technology.
Why would these market leaders need to embrace the nascent yet cutting edge technology? The answer could be found in the potential of blockchain technology and its adoption by other emerging players.
Take the example of Bitcoin for instance, it provides a peer to peer transaction facility anywhere in the world within several minutes with mere transaction fees. It encounters three major issues—borderless transaction, time taken for payment process and processing fees—in one shot.
After joining their name within the list of companies adopting blockchain, the payment giants are ensuring the new-comer could not impact the market share. And also to take care of future market share as well, which more or less depends upon the former.
Having a competitive advantage could be compromised if these companies would not adopt the emerging technology. In order to provide their users with frictionless, transparent and secure services, blockchain could become a crucial point for the payment firms.
Visa has deployed a tool for business to business cross payment in 2018. The tool developed by a blockchain company Chain was dubbed as B2B Connect. It helped the company to eliminate the entities acting as mediator for cross border payments. With this the company became self-reliant to facilitate its users and businesses to directly send the payments to bank accounts of their partners. Over hundred countries are now connected through the B2B Connect tool.
Mastercard also holds an expertise in the field as it has reportedly 89 blockchain patents. One such patent is the “Method And System For Payment Card Verification Via Blockchain.” The system is said to capture the cardholder’s information and securely verify it using the public blockchain. This way scammers and people involved in such illicit activities would find it hard to occupy crucial transactional information.
The common belief of people might not validate cryptocurrencies enough as an important creation but blockchain technology has better fate. People believe in the innovation and it is proving its worth wherever it gets deployed. From transactions to supply chain to internet of things (IoT) to smart contracts and a lot more, the number of use cases bring endless opportunities for the emerging technology to have a bright future ahead.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
