The future of digital payment is here!
How enticing does it sound???
A micropayment is one of the most promising Blockchain technology uses, that is driving the revenue funnel of many businesses and industries out there. To give you a clear understanding of what all gets involved within the micropayments and how blockchain has elevated its presence, let’s read ahead this blog post further…
What are micropayments?
Micropayments are one of the types of transactions, wherein small amounts of money, ranging from less than a cent to around five to 20 US dollars, get processed electronically.
How Micropayments evolved over the years?
Yeah, that’s an interesting part to know. The very first-generation micropayments were more an archaic method, as the internet wasn’t matured enough to take the benefits out of micro-transactions. Then it continued its journey and brought the second generation micropayments. Here, this transaction method started to gain the attention of the online service providers. This model turned out to be a significant factor in the growth of revenue.
Role of Blockchain in handling micropayments
Have you ever thought that what more you could do with those two to three cents in fiat money?
Ahhh, maybe nothing…!
No, you can do much more beyond your imagination with the future of digital payments, and you can buy a cryptocurrency and use that fraction of crypto to pay for the service.
Is it really possible?
Yeah, it is! You would be surprised to know that the smallest denomination of a US dollar is a cent and sums up to $ 0.01, on the other hand, bitcoin- Satoshi, which values 0.00000001 bitcoin. This means with the smallest micropayments you can easily buy the crypto. However, there is a transaction fee that must be paid to purchase crypto with fiat money.
Further, the integration of blockchain brings the ease of crypto wallets, letting the user pay without setting up accounts on any website.
Also, the Blockchain platform adds value to the micropayments market, wherein users can produce verifiable authentication claims and share only the required information with the vendors. And Blockchain in return gives them an opportunity to monitor the usage of their personal data and control the amount of information they share, which can further be monetized as well.
Are there any challenges involved in crypto micropayments?
Well, just like any other technology, there are challenges with the crypto micropayment as well. Let’s get a quick look
- Certain blockchain apps take a longer time to make the transaction confirmation, this is a challenge as not every customer has all the time in the world to wait for the transaction to happen.
- The volume of micro-transactions is higher than compared to any conventional transaction method, and as of now, blockchain is not fully capable of handling high volumes.
- Speed and scalability are still concerns while dealing with the crypto micropayments.
What is the future of crypto micropayments?
It wouldn’t be wrong to say that in today’s time, the blockchain laden micropayment concept is widely accepted, and if reports are to be believed then there are more than 15,000 businesses dealing with cryptocurrencies. And a massive number of renowned brands have embraced bitcoins as their preferred payment option.
Surprisingly the notable brands like Twitch, Wikipedia, NBA teams, Dallas mavericks among many others are gladly relishing the cryptocurrency environment.
On the other hand, global payment companies are very involved in utilizing the cryptocurrency. The most popular names like Mastercard, PayPal, and Visa, are trying their best to venture into the cryptocurrency marketplace to widen their reach and acceptance.
Just like this, many other transaction methods are occurring and taking benefit from the security and speed of blockchain. In other words, the layer of confidence this technology has brought into practice is nowhere to be seen with any other financial technology, proves the fact that blockchain is leading businesses.
Eventually, many budding startups and enterprises are looking for opportunities to break into the crypto-vending market. Sooner, it will be visible to consider using virtual money to make real-life purchases.
Blockchain is here to stay and with time it will evolve, adding the security parameters to boost our collective confidence along the way. Blockchain’s properties; transparency, immutability, and security, make it reliable and trustworthy for areas such as supply chain management, smart contracts, financial reporting, the Internet of Things, the management of private information, and digital payment.
Indeed, the inception of blockchain has catapulted the development of innovative methods to be utilized in different industries and businesses across the globe. And the envisaged benefits offered by this technology are well embraced, facilitating a faster and secure way to make payments.
Micropayments would trigger a new environment enabling financial issues to be eradicated from the global map. This will not just bring a healthy economic impact, but will also emphasize the benefit on the socioeconomic platform.
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