• Tuesday, November 28, 2023
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BusinessDay

Blockchain payments for businesses: Here’s everything you need to know

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Blockchain payments, or “Web3 payments,” as they are often referred to, although frequently discussed, still remain shrouded in complexity, leaving many individuals and business owners grappling with comprehension.

As such, while you may have heard about blockchain payments and Web3 payments on many occasions, the concept most probably still poses operational difficulties. This, however, is unsustainable for the already-underway process of transitioning into the future of financial transactions, especially because blockchain payments promise to completely redefine an already saturated landscape.

Blockchain technology may sound complex, but in its simplest form, it is a decentralised digital ledger that records transactions across multiple computers and ensures that each transaction is secure, immutable, and transparent.

In recent years, blockchain technology has become the cornerstone of the digital revolution, and one of its greatest proof points is the evolution of Web3, a concept that envisions a decentralised internet where users have more control over their data and interactions. Now, central to Web3 is the potential to revolutionise payment systems by offering individuals and businesses the opportunity to engage in peer-to-peer transactions without the need for the numerous inhibitions and intermediaries that typically characterise traditional payment systems.

Traditional payment systems have long faced challenges, such as high transaction fees, sluggish settlement times, a lack of transparency, and susceptibility to fraud, all of which hinder economic growth and financial inclusion.

To address these issues, blockchain technology, through web3 payments, has emerged as a game-changer, offering an array of benefits for businesses and consumers alike. Imagine a system where transactions are transparent, secure, fast, and global; this is what Web3 payments proffer, enabling businesses access to an unprecedented rate of financial and operational efficiency. That’s not all. Web3 payments are also designed to be user-friendly, enabling consumers to make transactions in a peer-to-peer manner without the need for intermediaries. This peer-to-peer functionality is particularly handy for digital businesses.

Read also: Demystifying Blockchain: Basic Introduction for Non-Tech Women

Evidently, Web3 payments are here to stay. It is no surprise that the industry is continually booming, with a reported market size of 3.2 billion USD in 2022, projected to reach 39.8 billion USD by 2030, exhibiting a compound annual growth rate (CAGR) of 43.6 percent during the forecast period. Also, a 2022 survey conducted by Deloitte titled “Merchants getting ready for crypto” revealed that nearly 75% of businesses in the US plan to accept crypto payments within the next two years.

Now, we’ve gone through the essence of blockchain technology, what web3 entails generally, and more specifically, the concept of web3 payments. At this point, you’re probably wondering what benefits web3 payments portend for your businesses, its different use cases, and most importantly, which companies are offering reliable blockchain payment solutions that you can leverage.

Not to worry, because in this feature, we’ll dive deep into these subjects. We’ll also introduce you to Fuse Network, a company launched in 2019, and an innovative, Ethereum Virtual Machine (EVM)-compatible, decentralized public blockchain offering credible, and accessible web3 payment solutions for your businesses.

So let’s get into it. How can web3 payments transform the future of business transactions, what are its use cases, and how is Fuse Network leading the way in this regard?

Streamlining Cross-Border Transactions:

Many enterprises, especially digital businesses such as e-commerce, often operate on a global or multi-regional scale, requiring efficient cross-border transactions. This reality, in many cases, presents an operational challenge for the said businesses as the present cross-border payment systems are inhibited by numerous hindrances including intermediary interference, long transaction routes, and lengthy screening processes. In all, this also creates a problem of timeliness and cost-effectiveness for the affected businesses.

Cryptocurrencies like the FUSEtoken, Bitcoin and Ethereum have already showcased the potential of blockchain for cross-border remittances. However, there remains a need for a streamlined payment infrastructure that guarantees the elimination of intermediaries, cost reduction, and expedites transactions.

To address this, Fuse Network has redefined the cost and logistics dynamics of digital transactions, and one of its standout features is the elimination of transaction fees and its lightning-fast payment infrastructure. As we know, traditional payment methods often burden businesses with fees that chip away at their bottom line, while being time-consuming, especially for international trade.

In contrast, Fuse Network impressively achieves a remarkable block time of only 5 seconds as well as an average transaction fee of less than a cent. Furthermore, the blockchain process demonstrates impressive processing capabilities, handling up to 60 transactions per second for ERC-20 assets and an astounding 120 transactions per second for Fuse-based tokens. This heightened efficiency provides a significant advantage for businesses, making it a timely and cost-effective choice for digital businesses of all sizes. This structure creates a financial advantage that resonates with entrepreneurs, startups, developers, and established enterprises alike.

Fostering Web3-Based Loyalty Systems:

Many modern businesses now understand the need for innovative reward systems and loyalty programs to forge deep emotional connections with their customer base. In this regard, Web3 technology is reshaping loyalty programs using digital collectables, which offer customers unique digital assets as a symbol of their loyalty to a brand. By leveraging web3, customers can now own branded digital assets that reflect their relationship with a brand. Some exciting Web3 loyalty program use cases include digital membership cards, sweepstakes, unique collectables, hybrid NFTs, gamified programs, community building, virtual events, fractional ownership, and custom artwork to celebrate loyalty milestones.

Notably, Fuse Network is reinventing customer loyalty through web3 and blockchain technology. The platform offers innovative solutions and loyalty programs in the form of digital collectables designed for festivals and food delivery apps. An exciting example of this is the Bitazza and its Freedom Wallet. Bitazza leveraged Fuse’s technology to develop a non-custodial mobile wallet running on the Fuse Network. This practical approach demonstrates Fuse’s capability to transform blockchain concepts into real-life solutions accessible to everyday users.

Read also: ‘Dubai is leveraging blockchain technology to transform the real estate industry’ -Ali

Enabling Secure and Cost-Effective Micropayments:

Micropayments are the lifeblood of content creators, freelancers, and digital service providers. Unfortunately, traditional payment systems are often inefficient and costly for these microtransactions. For digital businesses dealing with these, web3 payments offer a cost-effective solution. This is because it enables quick and affordable transfers of small sums of money, making it ideal for content creators, freelancers, and digital service providers alike.

With its innovative, mobile-first approach, Fuse Network presents a platform for businesses to make micropayments effectively. The company also empowers businesses and communities to craft tailored mobile payment solutions, complete with digital tokens and wallets, while embracing DeFi services without breaking the bank or investing excessive time. With Fuse’s user-friendly approach, establishing a mobile-first ecosystem is a seamless process. This transformation turns a basic community into a thriving micro-economy, offering substantial benefits to end-users, especially when performing micro-transactions.

Unlocking DeFi Opportunities:

Web3 is disrupting the payment landscape, with several trends and innovations driving this transformation. These include the rise of central bank digital currencies (CBDCs), the integration of blockchain into existing financial infrastructures, and the development of decentralized finance (DeFi) applications. In line with this, digital businesses can harness the expanding world of decentralized finance (DeFi) by integrating web3 payments. This integration presents opportunities for decentralized lending, borrowing, and a suite of financial services that can significantly improve a business’s financial operations.

Notably, Fuse Network, integrated with web3 payments, seamlessly connects to the DeFi ecosystem. This enables access to decentralized lending, borrowing, and a range of financial services. Digital businesses can also diversify their revenue streams, ultimately enhancing their financial operations. Impressively, the Fuse Network platform prioritizes creating a user-friendly experience for both mainstream users and businesses. With tools and infrastructure that simplify the development and deployment of decentralized applications (dApps), Fuse Network empowers developers to create applications that can be easily adopted by non-technical users.

Fusing the Future of Payment Solutions

In all, Fuse Network is leading the way in transforming the web3 payment solutions sphere with its numerous use cases and operational benefits for businesses. However, that’s not all. Fuse Network also takes its innovation a notch higher by empowering businesses with the technical tools they need to navigate the world of web3 payments. The company offers a range of APIs that enable businesses to interact with the blockchain, facilitating various functionalities such as transaction processing, payment notifications, and invoice generation. This versatility allows businesses to tailor their use of web3 payments to their specific needs, fostering customisation and innovation. Also, for businesses looking to provide a user-friendly experience and seamless payment solutions to their customers, Fuse Network’s Software Development Kits (SDKs) are a game-changer. These SDKs allow businesses to offer blockchain payment capabilities to other, smaller merchants who might have limited technical resources. The result is a user-friendly, cost-effective, and reliable payment solution for businesses, further amplifying the benefits of web3 payments.

With its innovative, EVM-compatible platform, Fuse.io is at the forefront of the data-driven blockchain payments revolution. Through its blockchain payment infrastructure, Fuse.io is shaping the world of payments, offering a glimpse into a future where innovation knows no bounds, and transactions are conducted with unprecedented ease and trust.

Ira Lakhman is the COO of Fuse.oi