The Crypto Economy is Ushering in a Cashless World
The progression towards a cashless world is happening rapidly. Decades ago, cash was king. Then came the debit cards and credit cards that largely eliminated the need to carry wards of cash. With the emergence of the Web, electronic banking systems shifted towards digital payment systems such as PayPal and other digital wallet systems like Skrill, Square and Venmo.
In the developing world, fintech innovation and the drive towards a cashless economy is taking a different route. Instead of credit cards and debit cards, mobile payments are occupying a growing chunk of the cashless economy. There are various forms of payment gateways and technologies which, put together, are creating a strong momentum towards a cashless economy in the not so distant future.
The evolution of payment systems is staying in step with advances in technology and innovations. One of these technologies is blockchain systems and cryptocurrencies that they support. Blockchains are decentralized and distributed ledgers which maintain immutable and time-stamped records of transactional data. The structure of blockchains which is based on cryptographic methods and a distributed system that guarantees a higher level of security lends itself easily to financial transactions processing.
The use of blockchain system and cryptocurrency in payment systems ensure a fast, secure and ultra-low-cost payments processing services for both consumers and merchants. The encrypted distributed ledgers guarantee end users trusted real-time verification of transactions performed on the blockchain platform without having to rely on centralized intermediaries that often come with cumbersome KYC (Know-Your-Customer) requirements. In crypto lingo, it is pseudonymous and that is adequate for most users who don’t want to reveal too much of their personal details online but are also not looking for complete anonymity.
Blockchain technologies not only anchor payments processing but they also support cryptocurrencies that are increasingly becoming a mode of payment as well as an investable asset. In the wake of the COVID-19 crisis, for example, cryptos such as stablecoins that are pegged to the USD have proven to be stable and reliable investable assets even as other traditional asset classes dip in value.
Some of the earliest investors in blockchain applications for the financial sector have been financial institutions and fintech startups. The evolution of blockchain systems over the recent years has simplified their implementation in fintech solutions and we are now seeing financial institutions moving with speed from the exploration phase to the implementation of blockchain-based payment systems and solutions that promise to usher in a new decentralized cashless economy. This is being realized in a number of ways: -
Smart Contracts
Blockchain-based smart contracts allow for the delivery of ultra-fast, secure and trackable legal agreements over blockchain networks. Some of these even incorporate payment systems through various cryptocurrencies enabling end users to speedily execute and pay for contracts online when the conditions of a contract have been met. Smart contracts can easily be implemented in trade finance applications.
International Payment Processing Services via Digital Asset ATMs
The existing payment systems are sometimes too antiquated, too slow and too costly to meet the demand of the fast-paced modern business environment.
In the new digital-centric financial world, the physical money transfer infrastructure such as banks and ATMs are gradually being phased out. As the world becomes more cashless, ATMs and over-the-counter banking becomes less important.
Cryptocurrencies such as Bitcoins and their corresponding digital wallets are becoming the new megatrend and creating a completely new financial ecosystem. New corporate cryptos such as Facebook’s Libra are also emerging so we might soon see top retailers begin to embrace cryptos as a ubiquitous payment form.
By leveraging the blockchain backbone, cryptos such as Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Ripple and Bitcoin Cash among others may grow to a critical point where they can serve billions of people without relying on extensive physical infrastructure. Instead of legacy ATMs, we will have digital ATMs such as WallMarket, a digital asset ATM where users can purchase Bitcoin and other leading cryptocurrencies for as little as £20. The platform offers a two-way digital ATM where users can easily exchange their cryptocurrencies into pounds sterling. Users simply have to set up a Bitcoin or digital currency wallet with WallMarket and they can begin transacting easily via their smartphones or an internet-enabled device.
WallMarket is the latest entrant in the fast-growing e-money ATM market across the globe. There are currently 6,000 such portals across the world. The company offers a value proposition where users can also invest in its digital asset ATMs and earn a passive income from the venture. For venue owners who wish to have a digital asset ATM on their premises, the company covers the installation costs of the WallMarket machine.
The WallMarket Group model represents just one of the iterations of the new age financial transactions being spurned out of the blockchain ecosystem as the world hurtles towards a cashless economy. In this case, its business model seamlessly plugs the cutting-edge world of the blockchain and cryptocurrencies into the traditional ATM vending that we are more familiar with. It’s the first bridge on our journey towards a fully cashless economy.
Rupert Ireland, Director
Official website — http://www.wallmarket.group/
