In a recent insights report, Ripple discusses four key observations about the benefits of payment usage, adoption plans, and barriers to growth. Ripple and the US Faster Payments Council (FPC) worked on a second annual 2023 global survey that looked at the current and future use of blockchain payment systems to better understand what’s happening in the market.
More than 100 payment leaders participated in the survey, including a significant number of founders, CEOs and technical leaders.
Four important insights
In this sense, Ripple presented four key insights about blockchain in global payments. First, blockchain unlocks real value in payments.
According to Ripple, past research has shown that leaders were optimistic about blockchain and cryptocurrency technology for faster payments, as well as the potential of blockchain payment processing. Now these feelings have materialized into real value.
Second, while the use cases for blockchain payments are broad, they may not be of equal importance. When it comes to domestic payment transactions, organizations show an affinity with business-to-business (B2B) applications. For context, peer-to-peer (P2P) payments are the second most popular use case among those testing or using cryptocurrency, accounting for 20%.
Consumer-to-business (C2B) payments are the least targeted use case for companies developing or testing blockchain technology. However, for those considering future use, there is some interest in C2B.
Respondents also expressed a strong preference for cross-border payment use cases that reduce friction, risk and costs.
Third, fear of cryptocurrency is ‘largely’ subsiding. Highlighting an encouraging development, Ripple states that 59% of respondents’ businesses allow (or are considering allowing) consumers to make cryptocurrency payments. Currently, 28% of organizations are against this. The concerns among this latter group have to do with two main causes: crypto aversion and tolerance for low risks.
Last but not least, sentiment around blockchain technology and sustainability remains strong among payment leaders.
Ripple shares expectations about the use of blockchain in global payments
Ripple reveals its expectations for blockchain technology, describing it as one that delivers proven results in a diverse, wide range of compelling money transfer use cases, faster and more cost-effective payment transactions, and a more future-proof, transparent payment option than traditional Payment Methods.
As deployments increase, Ripple expects the story of blockchain’s sustainability, flexibility and usability in global payments to grow.