To the majority of people, blockchain technology is a mystery that appears to be limited to bitcoin. But it’s so much more than that.
While cryptocurrency is where blockchain started, it has evolved into a technology that makes transactions easier in a variety of situations, including the B2B payment scenario, thanks to years of innovation.
In this article, we’ll go over some of the benefits of blockchain payment processing over more traditional payment methods (such as paper checks and credit cards), as well as why blockchain is the future of B2B payments.
The main benefits of blockchain payment processing
More centralized record-keeping
With manual payments, it’s simple to lose track of records and evidence of payment. This remains true for a variety of digital payment methods. It’s easy to lose track of payment history if you don’t use a simplified financial software program.
None of this is an issue with a blockchain payment system. You’ll be able to access full records of each of your clients’ transactions with your organization and simply verify them. This can help you keep track of what you owe and will come in handy when it comes to month-end and year-end accounting responsibilities.
Because blockchain coding is immutable, any changes made cannot be reversed. There is always clear evidence established for every transaction, and neither side can change or alter that proof after the fact.
It’s also really safe. While existing digital payment methods are vulnerable to hacking, thieves will have a considerably more difficult time accessing blockchain payment processing. That’s because it’s stored on a shared system, and accessing it from outside of that system is very hard.
There will be no involvement from a third party
Cryptocurrency, one of the most revolutionary payment systems in recent years, is powered by blockchain. Cryptocurrencies rely on blockchain because it provides a decentralized source of data. In other words, no third-party entity is implicated in the monitoring and management of cryptocurrency transactions. It enables online investors to trade digital currency on a worldwide scale by eliminating middlemen and authorities.
While this helps cryptocurrency remain updated, it also enables the two parties involved in a transaction to communicate directly. Because the transaction is no longer completed by a third party such as a bank or a loan operator, both parties to the transaction are aware of how the payment is being processed.
Furthermore, because no third party is involved in the transaction, there are no third-party transaction costs. There are no hidden or additional costs with blockchain because you only spend what is required to complete a transaction.
On both sides of a B2B transaction, blockchain technology supports increased trust. This is facilitated by two characteristics of blockchain: its unchangeable past and the capacity to share files.
Both the vendor and the buyer can know when their transaction is finished since the blockchain has an immutable history that updates with every transaction. There will be no more doubts or errors in bills since one party may hold the other accountable by referencing the blockchain.
Meanwhile, because blockchain allows for file sharing, either side can examine the chain code at any time, and neither can shut the other out. As a result, all stakeholders may see the data because it is completely open and transparent.
Smart contracts lead to faster payments.
One of the most practical applications of blockchain is the ability to employ smart contracts to speed up payment procedures. As “if/then” scenarios, these contracts are incorporated into the blockchain code. If a customer orders a product or service from a vendor, for example, the vendor will send an invoice for the amount due. This automates invoice processing, allowing businesses to get started on transactions faster than ever before.
Should you accept bitcoin payments on your website?
With each passing day, more people are becoming interested in crypto projects and markets. As a result, many businesses across a wide range of industries began to question whether it is wise to pass up the opportunities that bitcoin, or any other crypto asset, presents once again.
The question to ask is whether or not accepting bitcoin would help your company. In most circumstances, however, it’s a no-brainer. As long as you have a service or a product to provide, the bitcoin payment option is simply another way for consumers who prefer to pay in cryptocurrencies rather than fiat currencies.
It has been demonstrated that the number of people who want to pay with cryptocurrency is several times greater than the number of merchants who are prepared to accept it.
The mismatch between crypto-paying customers and crypto-friendly retailers indicates a potential to bridge the demand gap and acquire a competitive advantage over similar businesses.
Is blockchain the right technology for your business?
We’ve highlighted a few valid reasons to use blockchain for payment processing, but is it ideal for your business? We believe so. After all, what business wouldn’t benefit from a payment service that guarantees data protection and transparency?