The blockchain is the revolutionary technology that led to the evolution of cryptocurrencies like Bitcoin, Ethereum, etc. Mobile payments have also emerged as a convenient and easy mode of payment for people across the world. The rise of blockchain technology and cryptocurrencies is having a significant impact on mobile payments as well due to the security provided by blockchain networks. Many mobile pay companies are making headlines by using blockchain technology for strengthening their overall platforms.

Blockchain development company understands that the market needs secure devices and platforms at a fast rate for new applications or products so that the use of cryptocurrency across multiple applications can be simplified. Innovative solutions are thus being developed to meet the increased demands of devices and applications and seamlessly allow the conversion between different currencies across various mobile devices and platforms. The robustness and security provided to the application by blockchain integration forecast a strong growth of this technology in the mobile payment industry. Many industries are now demanding the integration of the evolving blockchain technology with online mobile payments. Smart contract blockchain is going to emerge as the most efficient way to pay for services and money transfer in the near future.

Advantages of using blockchain for mobile payments

Blockchain has certain characteristics that make it a suitable option for integrating with mobile payments. These primary characteristics of blockchain technology that make it a desirable option for facilitating mobile payments are:

Greater degree of security

Mobile payments still face the biggest hurdle of associated security concerns. The time-stamped, tamperproof, distributed blockchain ledger not only makes blockchain technology fraud proof and hyper-secure but also helps avoid double spending and price gouging. User accounts and details of other information are extremely difficult to hack using blockchain technology as even any minor tampering can be evident to everyone in the network.

Swift and easy instant payments

Some mobile transactions may take several minutes or even hours for the transaction to go through, keeping the user lingering on to check for its completion. This not only wastes the time of the user but also increases the chances of failure and tampering of the transaction. Blockchain technology assists in making the mobile payments instant by creating faster networks. Using the blockchain facilitated fast network the user can send money within seconds across the world without any middleman involved.

Introduction of blockchain wallets

Cash and cheques are now relics and even plastic money has now become a thing of the past with the introduction of mobile wallets. These digital wallets are appealing to mobile users because of the ease-of-use and convenience they offer. However, security still remains a concern for these wallets. However, by using blockchain wallet development technology, the transactions can be made more secure by incorporating features like multi-signature or internet level consensus verification technique to verify a purchase. This technology can thus enhance the speed and usage while cutting down on the costs for worldwide payments.

Better facilitation of peer to peer (P2P) lending

In the fintech industry, P2P lending is a hot trend as it allows the business of lending and borrowing money much easier and convenient. When P2P is combined with blockchain, the users can take advantage of the low interest rates for borrowers and higher return on investment (ROI) for investors on both local or global platforms. By eliminating the need for paperwork as needed in banks and financial institutions, and by facilitating direct loan agreement between lender and borrower, blockchain makes the process more secure.

Simplifying remittances

There is no need of middlemen and transaction fees during the global or local transactions as blockchain is a distributed decentralised network. This makes remittances much faster and simple as compared to other services as provided by commercial banks. This brings a huge annual savings on the part of customers taken in lieu of the financial services provided.

Extension of mobile payments to wearables and IoT

The use of blockchain for mobile payments has unfolded the role of wearables like watches, rings, headsets, bracelets, etc. in the marketplace. Using blockchain, the users can also store payment information with the internet of things (IoT) and do not need to worry about fraud as the information is shared and stored across a distributed and decentralized network. This information can then be accessed from any set of nodes/devices on private or public networks. This will make payments much easier and secure in the future.

Banking made accessible to all

In many countries like Nigeria, people may be having a smartphone but may not be having access to a bank account. Using blockchain these people can also participate in global eCommerce, secure loans, or transfer money to friends or family in a secure manner without having to pay large fees for the services.

Enhancing the reward and loyalty programs

Many businesses are already offering and managing reward and loyalty programs through mobile payments. However, blockchain development companies can add still more feathers to the cap by monitoring the way these points are traded from the public ledger and devising ways to improve it. Users can then get rebates or discounts by using their points at any of the outlets and can also transfer them to anyone they want to transfer in a risk-free and transparent manner.

Wrapping up

Mobile payments have now become the preferred mode of transaction for a maximum number of customers worldwide, and blockchain holds the key to making the mobile payment transactions secure, transparent, tamperproof, and decentralized.