Future of mobile payments in India
Nov 29, 2017 Posted / 2722 Views
However, the term Bitcoin is related to cryptocurrency and the underlying technology is what drove it - Blockchain that incorporates the potential to be used with various applications.
Simply, the term Blockchain is considered as a peer to peer software technology, storing data across a network of computers. There isn't one central authority managing the transactions - as it incorporates a distributed network. In this way, it prevents any one entity from taking down the entire network - in case of any dishonored. With the use of cryptography, Blockchain ensures that records from duplication or any interchange.
The distributed ledger which can be called as an online system-wide account book that maintains every transaction occurs between two entities. Chronologically, the record is stored and added to the blockchain. Finally, all parties in a secure network obtain copies of transaction records of financial transactions. This shows that the transactions thus not be independently verified by the third party. In order to put it in standpoint, blockchain contains the record of everyone who owned a bitcoin, since inception.
With the advent of cryptocurrency - like Bitcoin and Ethereum, Blockchain has revolution mobile technology. The blockchains integration in online mobile payments has made a lot of industries to looking forward in order to embrace this advancement. It is predicted that in the coming years, smart contract blockchain is considerably the most efficient and effective way to pay, ranging from services to transfer of money.
No only, Bitcoins are the only application uses Blockchain technology, but online signature services, voting systems, and many other applications are also using it.
In a conversation with Scott Manuel, the vice president, and head of strategic product management for the applied innovation organization at Thomson Reuters, on blockchain significance in the Indian milieu. Here are the excerpts from that interaction
“You can consider blockchain as a catchphrase of late and it is relevant to think about it in the Indian context”
Undeniably! Regardless of geography, blockchain is applicable to cases, but sometimes such cases are even tougher in certain geographies. Detailed to India, this commodity is immutable and the distributed qualities of blockchain can be applied to the - land title management system, or mobile payments system, or the Aadhaar identity program. The key is to potentially comprehend the attributes of blockchain - you really need and want. Don't just, blindly implement blockchain because you can. Its value should be there.
Moreover, mobile payments are the most interesting, and booming, developments in the payments industry that blockchain has made. But, what happens when it combined?
Let`s see the major the advancement blockchain has made to make the mobile payments more secure, speedy, and pay effectively for goods and transfer funds.
BitIndia which has taken the route of blockchain and is in the process of creating a crypto wallet and exchange for Indian citizens.
Security concerns are the major hurdle that mobile payments have yet to overcome. Indeed, the blockchain incorporates the power to change – the focus of technology is not only being hyper-secure, but also preventing scams, such as fraud, double-spending, and price gouging. Transactions are recorded on a tamper-proof ledger.
Through blockchain, you can expect mobile payments to be fast. No doubt, it is instantly fast but it still takes some time in a transaction - several minutes or hours for a transaction to go through. Yet, this issue is associated with bitcoin.
Using blockchain technology, payments become actually immediate as developers are working on making faster networks and you can send money to your friend lives across the world and in just a matter of seconds
In the payments industry, Peer-to-peer lending is one of the most recent trends currently happening. Thanks to the convenience, P2P lending is the fastest growing fintech industry that has lowered interest rates for borrowers, and a solid ROI for investors. Using blockchain technology, borrowers are allowed to use mobile devices in order to secure a loan directly from a lender, eliminating the need for regulations and paperwork associated with traditional banking process.
Across the globe, an estimate has been made by World Bank - the average cost of remittance is 7.5% and with commercial banks, it is typically of 10%. In case, it could be decreased to even 5%, people all over the world can make an annual savings of $16 billion.
Eliminating third parties, the blockchain enabled mobile users to relocate money anywhere in the world, eliminating expensive service and transaction fees.
"Mobile Wallet" can be used for virtual secure payment tokens like Bitcoin (BTC), Ether (ETH), Litecoin (LTC), as it works best with existing INR. and is tracked better via Banks.
Whereas, if we talk about Cash and checks, they are relics - you know very well. Thanks to mobile wallets, even plastic is becoming a thing of the past. With Apple Pay, Samsung Pay, Android Pay, and some retailers, including Wal-Mart offering digital wallets, the convenience and ease-of-use are transforming to mobile users.
Security is a major concern is however overwhelmed and by availing features - the multi signature to verify a purchase, Blockchain technology made mobile wallets even more protected. Further, this also impacts the speed, usage, and fees associated with universal payments.
For offering and managing reward programs, mobile has already proven to be an excellent platform. Using blockchain, it has completely improved the way of treading.
Since the record of the transaction is made on a public ledger. Monitoring the points of trading has become easy for enterprises. Right now, it seems to be difficult. For instance, you could send some of your points from a café or airline to your spouse within - just a tap of a button.
Places like Nigeria still a major concern in accessing to a bank account. Using a smartphone, Individuals can use the blockchain. Through this commodity, they can participate in global eCommerce, securing loans, or transferring money securely to friends or family, eliminating pricey fees.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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