- A 2023 New Value Report by Ripple shows that most crypto users think payment could largely contribute to crypto adoption.
- It is also reported that 80 percent of global finance leaders are on the verge of shifting to crypto for payment settlement.
The latest report by Ripple has revealed that more than 80 percent of global finance leaders would begin to use crypto in their businesses in the next 3 years. This is to leverage the instant transactions feature of blockchain technology.
A huge shift in finance is underway. More than 80% of global finance leaders expect to begin using crypto in their business in the next three years.
Download the 2023 New Value Report to understand how to unlock the power of blockchain for your business. https://t.co/qQSHctnKW2
— Ripple (@Ripple) July 18, 2023
In Ripple’s 2023 New Value Report, 44 percent of the respondents believe that payment could be the biggest source of crypto adoption. According to half of them, cross-border payments could be a top use case for crypto.
Payments, especially cross-border payments, still rely on legacy rails that can take days for transactions to fully settle. In contrast, blockchain and digital asset technologies provide a seamless global infrastructure in which payments can be sent and received anytime, anywhere, instantly with lower fees and 360 visibility.
The report observed that transactions are facilitated using traditional payment rails built years before the emergence of mobile phones and the Internet. This usually requires intermediaries to validate and settle transactions, causing delays and inefficiencies.
Moving funds across borders face more challenges imposed by time zone differences, currency exchange, Patchwork global regulations and compliance requirements, as well as limited hours. This slows the process and makes it more expensive. These frustrations were also cited by the respondents of Ripple’s survey.
According to the report, cross-border transactions have so far become one of the most powerful use cases for crypto as it eliminates third parties and settles payments instantly. Assets moved across borders can be liquidated into fiat, making it more cheaper and transparent.
Brendan Berry of Ripple Speak on Crypto in Cross-Border Transactions
Ripple’s Head of Payments Products Brendan Berry explained how this work.
The magic of how that all happens is because you’re using a digitized or tokenized asset, and the flow allows you the ability to move funds quickly. It’s achieved without incurring the costs associated with needing to rely on different financial institutions as a middleman in the flow, removing parties from a normal construct of correspondent banking.
In the future, more companies are expected to embrace crypto payments like XRP for their day-to-day transactions and cross-border payments. The cross-border payment is expected to hit $250 trillion by 2027. It is stated that more than 50 percent of global payments and treasury professionals believe that fast payment and cost savings are the main reasons why people use crypto for their cross-border transactions.
According to Doug Fritz, CEO of F2 Strategy, a wealth tech consulting firm, blockchain enables payor and payee to translate and authenticate value within the same line of code. He believes that the technology has enough to have all the “makings of a transformative answer.”
The report further mentions that digital banking has recorded increasing activities in the past three years with the total value of global mobile device payments reaching $1.2 trillion in 2022.
In the United States, over 65% of the population is expected to use mobile banking by 2025, driven in part by the popularity of open banking platforms and payment apps like Venmo and CashApp. Throughout Asia — the global leader in digital finance adoption — online banking is expected to reach nearly 1 billion users by 2024. In China, over 87% of respondents in an EY study have already used fintech services.
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