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What Are The Benefits Of Blockchain In Payments? 7 Experts Share Their Insights

  • 26 September 2019
  • Sam Mire

You’ve likely heard plenty of bluster about what blockchain can do for industries X,Y, and Z. Much of that bluster is likely derived from somebody’s rear-end. When it comes to payments, we talked to industry insiders who have a clue about blockchain’s realistic potential, and they shared their reasoned insights with us:


1. Alexi Lane, CEO of Everex

Alexi Lane“It’s obvious. Instant settlements and virtually no transaction costs. Today Amazon delivers packages faster than multinational banks deliver electronic payments. Blockchain technology already showed how it can fix this problem with cryptocurrencies. Problem is in understanding of all the details related to this tech that will allow innovators, bankers and regulators to build competitive products. Once we move physical cash and e-money from their closed loop current systems into blockchain, the more use cases will pop up that we don’t even see today. I believe cross-border remittances, and local merchant payments will benefit from this tech the most.”


2. Giorgos Kourtellos, Chief Blockchain Architect of PumaPay

“There are many benefits that blockchain technology brings! Ultimately, it gives businesses back the control they want by streamlining online payments and improving business and customer relationships.”

 


3. Monica Eaton-Cardone, Co-founder and COO of Chargebacks911

Monica Eaton-Cardone“It’s hard to narrow it down to just one, but I’d say cost is the most obvious. It’s true that building out a blockchain system from scratch, and developing the infrastructure to maintain it, won’t be cheap. However, that upfront investment will quickly pay-off. One report suggests that blockchain adoption could ultimately save banks between $15-20 billion a year by 2022. It’s hard to debate the overall efficiency of the blockchain model, compared to the levels of redundancy necessary to make ACH payments viable.”


4. Nimrod Lehavi, Co-founder and CEO of Simplex

Nimrod Lehavi“Just like in the transition of the telephony industry to VOIP infrastructure, if the financial institutions adapt fast enough to blockchain infrastructure, they would be able to move fast, be more reliable and save billions to the end clients. We must not forget however, that in the telephony industry, the companies banked on these savings for about a decade before regulation and market forces caught up and forced them to transfer these savings to the users.”


5. Todd Cameron, Product Owner at Vertex, Inc

Todd Cameron“Transactions are virtually frictionless and occur in extremely close to real time. When settlement happens at the moment of transaction, there’s reduced counterparty risks, meaning there’s far less risk that the counterparty can’t meet its obligations. The settlement and exchange of value are essentially the same event. Part of the reason these transactions settle instantly is because there’s no intermediary like a financial institution to slow down the exchange of value.”


6. Brendan Miller, Head of Product Marketing at Rapyd

Brendan Miller“Speed and cost. An email can go around the world in seconds, but we still can’t get a payment across the world quickly. Blockchain can solve this. Also, a marginal reduction in the cost to send a cross-border transfer could be very disruptive. Cost reductions in cross-border transfers could go a long way in enabling more people and businesses access into the global financial system thus transforming economies.”    


7. Victor Zhang, CEO of AlphaWallet

Victor Zhang“There is great benefit to tokenized delivery. Atomic DvP doesn't require a third-party host, thus reducing the friction of any exchange.

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About Sam Mire

Sam is a Market Research Analyst at Disruptor Daily. He's a trained journalist with experience in the field of disruptive technology. He’s versed in the impact that blockchain technology is having on industries of today, from healthcare to cannabis. He’s written extensively on the individuals and companies shaping the future of tech, working directly with many of them to advance their vision. Sam is known for writing work that brings value to industry professionals and the generally curious – as well as an occasional smile to the face.

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