And the role of Mercuryo.
Although the payment industry is rapidly evolving, business banking stays rather complicated and outdated. Transferring money to other companies or individuals across the borders is still a very costly, lengthy, and inconvenient procedure. The companies have to deal with high processing costs, lack of transparency, and a long chain of intermediaries involved in the funds transferring process from tricky onboarding and meeting all the legal requirements.
All the other areas of our daily lives are being constantly streamlined by technology. For instance, when you’re sending a message via a Messenger app, you will be able to track its status in real-time and see whether it has been delivered or seen. You can see if the recipient is online or whether they are currently typing the answer. If we can reach this level of transparency when sending a message, why can we not have the same with payments?
Globalization, digitalization, and fintech play a significant role in developing the payments industry, but the last piece of the puzzle is still missing. Cryptocurrency may become that magic solution to fix yet imperfect money transferring services and become the driving force of the international business.
But first of all, the payment networks have to come together, embracing the idea of interoperability.
It’s All About Interoperability
Banking networks form a very complex and often sluggish system. Multiple participants are involved in processing a simple payment transaction: acquiring banks, emitting banks, corresponding banks, card issuing companies. Whenever a consumer makes a purchase or withdraws money from an ATM, all these institutions situated in different corners of the world start interacting with each other, confirming and updating card balances. The same goes for business transactions, except that currently, they are not quite robust yet.
In the ideal world, such payment networks will let suppliers receive their payments immediately and speed up the supply chain distribution process. Suppliers would be able to broadcast their payment preferences to their clients using the network and consequently have more control. This mechanic will let business owners effectively plan and optimize their cash flows and grow their business. At the same time, the clients would use their preferred payment platforms and won’t have to change much in their payment routine.
Sending and receiving B2B transactions should be as fast and easy as transferring money via your regular banking app, and cryptocurrency-based solutions can make a revolutionary change. So why haven’t they?
To begin with, banks, as well businesses themselves, are not rushing into cooperation with new and ‘risky’ tech that nobody has tried out yet. Also, the infrastructure itself is not quite ready. For example, more and more people start using gig platforms to earn their living and pay for daily necessities. Online shopping and services became especially essential recently. However, transactions on the business side are not as smooth as the customer’s ones.
Many freelancers seek ways to be rewarded more swiftly, expecting to get quick, or better immediate, remuneration payments. Unfortunately, desperately outdated infrastructure and archaic way of handling vital processes on paper are slowing down disbursement speed on gig platforms, preventing freelancers from getting the service they hope for.
A Way Out: Blockchain Solutions
Cryptocurrency, regardless of critics, offers an unmatched advantage – very cheap transactions. And when we say ‘very’, we mean it. You can move as much as $194 million in BTC and pay a $0,1 fee. In fact, it doesn’t really matter if you’re sending $100 or $100,000; the cost of transferring money across the borders will stay exceptionally low.
At Mercuryo, we’re focused on building an efficient payment infrastructure that allows businesses across the world to operate with both fiat and crypto, depending on their current needs. By connecting banks and enterprises, Mercuryo can help its customers open IBANs and fiat accounts, accept cryptocurrency payments, send mass payouts, buy and sell digital assets, and execute cross-border transactions cheaper and instantly.
However, implementing similar solutions for an average company without previous experience with crypto is a challenge. Businesses often lack expertise in the payment industry and have to deal with high fees set by institutions that consider them high-risk. They have to set up an anti-fraud department and undergo complicated onboarding procedures, and all these procedures might take years to deal with unless you partner with Mercuryo.
The Bottom Line
Blockchain might not be the only technology that will help business payments evolve, but it will be the major one. Implementing cryptocurrency into cross-border money transfers will provide this process with more stability, reduced cost, and improved speed. To make those few steps forward, all the participants, from regulators to end-users, should feel more comfortable using crypto daily. Bridging the world of traditional finance and digital assets as well as getting everyone on board, is not an easy task, but we’re rapidly moving in the right direction.