Traditional organizations in the payment industry, from payment service providers (PSPs) to banks, are still using outdated methods for settlement and cross-border transactions, akin to relying on horses for transportation. In contrast, innovative startups and forward-looking incumbents have embraced blockchain technology, the industry’s equivalent of the Model T.
The Blockchain Advantage
Payment providers exploring blockchain have reported impressive results:
- 50% settlement efficiency gains over traditional payment rails.
- Cross-border settlement times decreasing from days to hours.
For the past two years, I have advocated for viewing blockchain as a new set of payment rails and a natural evolution of today’s payment infrastructure. Blockchain supports an increasingly digital, interconnected global economy that demands 24/7, 365-day settlement. This evolution is happening right now, transitioning from horses to the Model T, and stablecoins are a key enabler.
Stablecoins and their underlying rails eliminate the friction and intermediaries inherent in traditional payment systems. The value proposition for merchants and businesses is clear: faster settlement times, lower transaction costs, greater transparency, and complete control over the payment process.
But why just take my word for it? Today, we are launching two new case studies that highlight companies transitioning from horses to cars – Worldpay and Bloxcross.
Case Study: Worldpay
Revolutionizing Merchant Settlement via Stablecoins
Worldpay, the world’s largest payment processor, handles over $2.2 trillion in payments annually across 146 countries and 135 fiat currencies. Continually seeking innovative solutions to enhance the merchant experience and expand into new markets, Worldpay explored how blockchain-based payments could substantially improve merchants’ capital efficiency.
Worldpay chose Fireblocks to power its merchant settlement solution, enabling 24/7/365 settlement in T+0. This enhancement significantly boosts operational and merchant capital efficiency. Merchants using Worldpay, such as Banxa and Crypto.com, have experienced a 50% efficiency improvement since adopting blockchain-based rails.
For more detailed insights, check out the full Worldpay case study.
Case Study: Bloxcross
Using Stablecoins to Improve Cross-border Payment Efficiency
Bloxcross, a payments infrastructure provider, enables global businesses to quickly settle cross-border transactions using stablecoins and blockchain rails. Bloxcross utilized Fireblocks to power their cross-border stablecoin settlement solution.
Traditional cross-border payment rails often result in settlement times of several days. By pairing the Fireblocks platform with their proprietary Adaptive Intelligence Conversion, an AI-powered tool optimizing currency conversions, Bloxcross has reduced settlement times for their merchants to just a few hours.
For further details, explore the full Bloxcross case study.
Conclusion
The transformation from traditional to blockchain-based payment systems is akin to moving from horses to the Model T. With stablecoins removing the friction and intermediaries of traditional systems, the benefits to merchants and businesses are substantial: faster settlements, reduced costs, increased transparency, and full control over payment processes. As highlighted by the experiences of Worldpay and Bloxcross, embracing blockchain technology represents a significant leap forward in the payments industry.
