As per a recent 2023 report, blockchain technology has the capability to reduce cross-border payment expenses for financial institutions by approximately $10 billion by 2030.
The report, published by digital payments network, Ripple, in collaboration with United States Faster Payments Council (FPC), surveyed 300 finance professionals from diverse sectors, including fintech, banking, media, consumer technology, and retail across 45 countries.
Out of the participants surveyed, which included analysts, directors, and CEOs, an overwhelming 97% expressed a strong belief that blockchain technology will be instrumental in enabling faster payment systems within the coming three years.
REPORT | 2023
What is the largest benefit of blockchain tech / crypto for payments?
See full report here by @Ripple and @Faster_Payments: https://t.co/EXmNLPY7qo pic.twitter.com/SC86cRVE5T
— BitKE (@BitcoinKE) October 21, 2023
Moreover, more than half of the respondents acknowledged that the most substantial advantage of cryptocurrency lies in its potential to reduce costs.
“In the survey, over 50% of respondents believe that lower payment costs – both domestically and internationally – is crypto’s primary benefit,” the report notes.
The report anticipates significant cost savings for banks in the next six years due to the adoption of blockchain technology in global transactions.
“Juniper Research supports this notion, pointing to blockchain’s potential to significantly increase savings for financial institutions conducting cross-border transactions – an estimated $10 billion by 2030.”
With the e-commerce landscape continuously expanding and businesses increasingly focusing on international markets, cross-border payments are projected to grow in the years to come. The report emphasized a notable anticipated surge in international payment transactions by the year 2030.
“Global cross-border payment flows are expected to reach $156 trillion – driven by a 5% compound annual growth rate,” the report noted.
Nevertheless, opinions among the participants were divided regarding the timing of when a majority of merchants would adopt digital currency payments. The survey results revealed that 50% of the participants were optimistic that most merchants would adopt crypto payments within the next three years. However, confidence levels varied significantly when considering whether this adoption would occur within the next year.
Among the participants, those from the Middle East and African regions displayed the highest level of confidence, with 27% of them believing that a majority of merchants would embrace crypto as a payment method within the next year.
Leaders in the Asia-Pacific region exhibited the least confidence, with only 13% foreseeing the adoption of crypto payments within the next year. On the other hand, across all 300 participants surveyed globally, 17% expressed their belief that such widespread adoption could take place within the next year.
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