Once again we see an article in Forbes that basically makes a debatable use of the present tense in the title, since the ‘is transforming’ usage is a bit different than ‘can’ transform (model verb) or ‘will’ transform (future tense). I am not an editor but have been edited enough to know this (and also remember diagraming sentences in grammar school). Again, eyeballs are important so ‘now’ is better than ‘later’. We also understand that one interpretation is that a transformation may already be underway. However, the author (who is a founder of an x-border payment fintech) does go on to clarify the situation after the title.
‘Blockchain is still a relatively new technology, but it is poised to disrupt the way companies and individuals process financial transactions on a global scale…..Though it’s increasingly common for businesses to source goods and services internationally, the cross-border payment system hasn’t changed in decades. As the founder of a fintech company that deals with cross-border payments, blockchain has been an exciting development that we believe will become integral to businesses like ours. Here’s why: Blockchain has the potential to resolve inefficiencies and provide a faster, cheaper and more secure alternative to the current system. Blockchain’s business value-add is projected to grow to $176 billion by 2025, according to Gartner Inc.’
Obviously a decentralized cryptocurrency in P2P or C2B models can be instantaneous, and for B2C fintech payouts it is more palatable, but on the B2B side of the equation, there is some ramp up time for banks who are under a regulatory microscope. However, the recent announcement by JP Morgan about JPM Coin is a window into where the banks may be going.
‘Sending an international payment through established banking channels is a complex, multistep process that involves several intermediaries..Blockchain solves these challenges by streamlining the process and storing every transaction in a secure distributed ledger. As soon as a transaction is recorded, the receiving party has access to the payment – no middlemen, no delays, no unnecessary fees. And once a payment is entered, it can’t be reversed or changed in the ledger, fostering greater overall accountability and security.’
The article goes on to discuss various benefits to using blockchain for a faster, better and less costly experience, but without going into details about any one particular scheme for B2B. Worth a read for this seeking to improve their general knowledge of the space.
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
