Blockchain Technology And Payment Processing – An Ideal Match

Blockchain technology is the ideal technology appropriate for the payment processing sector. In fact, today’s payment systems are full of hurdles and require change without delay. In several scenarios, a transaction can take multiple days to process along with added expenses and hardly any security.

Owing to these issues, people are wary of employing online payment portals to record or process their funds.

Here’s a brief view of the way in which a blockchain development services company can help businesses in payment industries be more efficient and error-free.

Challenges In The Payment Processing Sector

• Security risks
• Processing fees
• Chargebacks and payment fraud
• No suitable technical integration
• Decreased customer satisfaction
• Recurring ‘Know Your Customer’ process

Blockchain Benefits In Payment Processing Industries

Decreased processing fees

With each passing year the processing charge tends to go up and a lot of the time the variations of the fees are not simple to understand.

The benefit of custom blockchain development is that you get a payment solution that takes away the need for intermediaries. This means the processing fees are no longer required. Accordingly, when transactions are carried out the fees are reduced on both the customer end and the business end.

Digital identity verification

Payment processing systems powered by blockchain technology enable automated identity verification tasks.  Additionally, on the whole the process of verifying has been sped up compared to the conventional processes. The advanced system allows users to enter all their documents, verifies their information and generates a virtual identity for the user. Nevertheless, after the initial process the user will have ownership of their online identity and will need to make the appropriate changes and updates themselves.

Automated KYC (Know Your Customer)

Users tend to find the KYC process tedious and repetitive. In fact, it calls for a lot of form filling and requires users to provide a range of personal documents for verification.

The good thing of using blockchain based payment processing systems is that your users would only need to enter their details and documents one time and the system will store and automate the details when necessary. Blockchain technology is a ledger system that is sharable with solid security protocols. For this reason, there is no security breach that occurs when banks share the users KYC information between one another.

Working with a blockchain development services company will ensure that you have a payment system with the most effective features.

Centralised data and records

Often payment receipts and other records kept through manual means are lost or misplaced. You wouldn’t need to concern yourself with such a problem when using a blockchain-based payment platform. The system will let you check the transaction history of all your end-users, allowing the system to automatically verify them based on this information.  In this way you will be able to keep track of the amounts payable to your business, making it more efficient to carry out the monthly and annual accounting jobs.

No need for intermediaries

Blockchain technology negates the need for third-party intermediaries to track and handle user transactions. As an obvious consequence users would also not have to pay transaction fees ordinarily involved with third-party services. There are no added or hidden expenses when you use a blockchain platform, users would only pay for the transactions you have conducted.

Preventing money laundering

Several payment providers and banks are casualties to criminal activities such as terrorist financing and money laundering.

The platforms that are currently available are not equipped to tackle crises like this and can wreck the reputation of a company.

This is where blockchain payment platforms can help. These systems are designed to ensure that banks adhere to the regulations so that they are kept safe from illegal activities. What’s more, they are capable of anticipating the various types of illicit schemes that could occur in the future.

Consult with a leading blockchain development services company and figure out the benefits that this advanced technology will bring to the payment processing solutions that you plan on building.