It is inevitable to establish a direct relationship between instant and digital transactions, since we can say that the latter make the first possible. It may seem surreal, but, even today, despite the digitized world in which we live, and despite the speed with which everything occurs in the network, many electronic payments take an entire day to be processed.
Have you ever needed a transaction to arrive immediately? How long has it take to be received? Have you ever wished that these payments were instant and low cost?
In this post we want to share with you some ideas in this regard. Are you willing to dive with us?
What are instant payments?
When we talk about instant payments we refer to the immediacy. The possibility of making transactions and make the money available in few seconds in the beneficiary's account at any time and time of day. We talk about the elimination of all kinds of barriers. However, such operations can sometimes carry a cost.
However, I bet anything that when you talk about of transactions or transfers, your head immediately starts thinking about banks. It's something logical and normal if we understand that, traditionally, we lived in a society whose financial actions such as transfers, are intermediated by those institutions.
When there are intermediaries, time slows down, and transactions generally carry a cost, especially in international operations that require the SWIFT code. Immediacy plays a decisive role in almost all the actions you want to carry out in our daily lives. We want it here and now. Some professionals have found in this reflection a target, so that new systems have been created to make instant payments at a low cost.
Banks are direct witnesses of each transactions performed every day. Send money from one account to another has become a necessary and repetitive action. However, the circumstances and the consequences are not always the same, because, in most of cases, centralization brings committees of various categories, whose amount depends on the total cost, on the way in which it is made, the location, etc.
Current ways to make instant low-cost payments
Consciously or unconsciously, we all want our digital payments to be safe and instant. To that end, blockchain technology has come into action. It has created a peer-to-peer electronic money system. To understand it better, we refer to the possibility of sending payments between two parts directly without the need to use intermediaries such as banks or financial institutions.
In this case, a distinction should be made. Electronic payment systems based on blockchain technology not only consider those who send and receive transactions, but also those who process and validate them. However, the responsibility for the cost lies on the person who transacts. We're talking about a fee. Of course, this is a lower cost than the one we could pay through a banking system.
Advantages of making instant low-cost payments
Economy evolves and the way to manage it too. Why are the payments based on blockchain revolutionizing the transactions world?
- Payments are formalized at the same time as they are made and there are no intermediaries.
- The taxes and fees that may exist in each transaction are minimal and are distributed among the miners who confirmed that transaction.
- The security and privacy of the users is guaranteed thanks to the blockchain technology.
- Transactions can be made at any time and place, in addition to being an easy way of payment.
- You can keep track of when the transaction is made, because you know that at the same time it is sent is when you receive it.
- It makes possible an independent and decentralized financial system.
- It is a faster and more fluid
If you think that we haven’t mention other advantages, contact us!
Blockchain have been the driver of an authentic revolution, as that of the online payments. One single technology can change everything.