Payment-Processing in the Blockchain — Why Online Merchants Have Reason to be Thrilled
There’s no doubt blockchain will change our understanding of digital payment. The number of people who dip their toe into the world of cryptocurrencies, tokens and Co. by opening a wallet increases by the day — the same goes for the number of exciting new possibilities.
Therefore, it is no surprise that blockchain technology has the power to shape the world of e-commerce and, more specifically, payment processes. It offers a wide range of advantages to conventional online payment methods, thus it may revolutionize the connection between merchant and customer and take online businesses to the next level.
Advantage #1: Full transparency
One of the very interesting features blockchain offers, is the complete transparency it allows. Integrating blockchain in payment processes means fully recorded transactions that can be tracked by anyone.
In a blockchain environment, the payment history is stored not on one or two servers, but on thousands and thousands of computers and devices. This makes it almost impossible to perform fraudulent transactions,as transactions cannot be deleted and new transactions have to be validated by the system.
By the way: The transparency blockchain technology provides also makes it easier to track the origin of counterfeit products — an important issue for merchants who want to eliminate such products from their supply chain.
Advantage #2: Lower costs
As we learned, blockchain and payment transparency go hand in hand. As these processes run automatically, there is no longer any requiremnet for checks and balances, which absorb money and valuable manpower. Costs for financial reporting can be lowered immensely by moving payment-processing into the blockchain.
Another money-saving advantage of blockchain technology is this: Fees are considerably smaller, as there is no third party (payment provider) involved in the payment process. For every transaction, users still have to pay a small fee — but this is often only a fraction of the fees that are charged by conventional platforms. This makes processing payments in the blockchain even more attractive, especially for merchants.
Advantage #3: Payment across borders
To process transactions as fast as possible is a goal all merchants and customers have. Blockchain technology allows for super quick payment as it normally only takes seconds to transfer a certain amount from one wallet to another — 7 days a week, 24 hours per day. Long waiting periods, especially concerning international transactions, are a thing of the past: Once a transaction has been confirmed by the blockchain system, the payment is done.
Create your own future with GAMB
Blockchain payment undoubtedly is an investment into the future. It offers completely new technological possibilities. One example are fully automated processes: just think about an automated payment made only seconds after the goods have been ordered/delivered to the customer.
GAMB is building a marketplace using blockchain technology, enabling a simple implementation of whatever blockchain-related application may be needed in the future — like payment-processing.
Traditional, non-blockchain-based marketplaces — like the ones dominating international e-commerce today — will have a harder time to exhaust all the fantastic opportunities that come along with cryptocurrencies and blockchain.
And the best thing about it: With GAMB, the decision-making will lie in the hands of the merchants selling on the platform. So they can decide themselves how to best implement payment-processing via the blockchain to maximize the benefits it will bring them.
Who we are
GAMB — The Global Alliance for Merchants on the Blockchain has made it its goal to deliver a sustainable alternative to the powers currently dominating global e-commerce. We are building the leading decentralized marketplace. By enabling merchants to actively participate in every important decision, we empower them to be more than just customers of a platform.
Author
Lennard Kläfker is Head of Online Marketing at Gambio and has made the future of e-commerce his passion. He is fascinated by the opportunities available to online merchants today — and even more by what lies ahead. Whenever he finds the time to write about it, we will publish it here.
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