Implementing blockchain technology in payment solutions offers significant advantages in terms of providing enhanced functional capabilities compared to the existing bulk payment systems.
1. Reducing Cost
Payment solutions often experience operational inefficiencies because of transfer of information or assets keeping separate records of the event. Many times, there are two separate records, and a lot of time and resources are spent reconciling the two records at each step of the transaction. Blockchain eliminates the need of spending on data related processes. Obtaining, checking, and reconciliation can dramatically be reduced by implementation of distributed ledgers.
2. Improving Risk Management
Fragmentation of security operations can affect transaction processes. Lack of transparency regarding security ownership and commitment can be challenging for payment solutions organizations. Blockchain technology is decentralized; thus, every participant in a transaction will know about all assets, thereby resolving ownership issues.
3. Streamlining the Execution of Transactions
Blockchain technology can use smart contracts in accordance with business rules. By using these contracts, transactions can be streamlined by cutting out counterparties and intermediaries.
Organizations must follow the following for implementing blockchain technology successfully:
Payment solution companies must focus on building and accelerating their institutional knowledge of blockchain capabilities. They must also include the technology for proofs of concept and trials of new low-risk payment products and services. These companies must give Blockchain technology sufficient time to flourish and aim for an implementation that can allow payment solution companies proper integration with the wider blockchain ecosystem.
Naveen is the Founder and CEO of Allerin, a software solutions provider that delivers innovative and agile solutions that enable to automate, inspire and impress. He is a seasoned professional with more than 20 years of experience, with extensive experience in customizing open source products for cost optimizations of large scale IT deployment. He is currently working on Internet of Things solutions with Big Data Analytics. Naveen completed his programming qualifications in various Indian institutes.