Mobile wallets need blockchain for the next stage
No matter what industry you are in, you must be aware of the blockchain, which is booming in every vertical.
Among all the future-oriented mobile payment trends that we are going to witness in the near future, blockchain seems to offer an endless amount of possibilities, even given its challenges.
All of this sounds so perfect, but what does the blockchain actually do? Even without virtual currency, blockchain has a ton of benefits.
The Ethereum blockchain helps automate processing by pushing data to a user-generated contract for executing it on a specific date. Its use is largely for banks or other financial institutions that want to automate big contracts. Different uses of the blockchain include automated compliance, identity management, supply chain management, and decentralized ownership.
Mobile payments are becoming even more powerful and effective, and can benefit from blockchain in several ways.
One of the foremost challenges for mobile payments is to overcome security concerns. The blockchain can prevent crimes like duplicate spending, fraud and price-gouging. All transactions are accounted for through a tamper-proof ledger in order to provide higher security.
Mobile wallets are making cash and checks relics, and even plastic is becoming a thing of the past. The main concern with wallets is to overcome security threats. Blockchain provides safety features like the multi-signature for verifying a purchase, which helps to improve the usage, speed, and reduction of fees for all types of mobile payments.
Blockchain also drives peer-to-peer lending. P2P lending is one of the latest and hottest trends in the payments industry. Using the blockchain, borrowers can simply use their mobile devices for securing a loan from the lender on a direct basis. This reduces the hassle of dealing with the regulations and traditional paperwork of banks or financial institutions.
Faster payments are another benefit. We expect mobile payments to be nearly instant. But it still it takes several minutes or hours for a transaction to go through, which is also an issue with cryptocurrencies. Using blockchain technology, transactions can be processed faster and across borders.
And mobile payments are expanding beyond smartphones and tablets. With the use of wearable devices such as bracelets, watches, and rings, payment companies are embracing IoT. With the use of blockchain, users can store their payment information without having to worry about fraud. In the age of IoT, blockchain permits developers to tinker with their APIs by helping them to simplify the connection for all devices.
We have already seen mobile as an excellent platform to offer and manage reward programs. Blockchain holds the potential to take this to the next level by improving the process in which the points are traded. As the transactions are recorded in a public ledger, businesses can monitor how points are traded, which is a little tough to do today.
There are multiple ways of using the blockchain in different purposes and banks are experimenting with how they can make use of the Ethereum blockchain to prepare powerful smart contracts. These types of smart contracts verify and enforce the terms of a contract automatically, which is regarded as a major boon for banks and fintechs. Also, the financial institutions can use blockchains to settle loans on a quicker basis and identity management when compared to older processes.