8 ways blockchain technology is changing mobile payments

The most attractive and booming development in the payment industry is the rise of mobile payment and blockchain technology. What would happen if these two were combined to create a safer, faster and more efficient way to shop and transfer money?

Here are eight ways blockchain technology is changing mobile payments:

1. More secure

The biggest obstacle that mobile payments need to overcome is security. Blockchain has the ability to solve this problem because blockchain technology can not only be used to create super security, but also prevent fraudulent activities such as fraud, duplicate payments, and price gouging. Because transactions supported by blockchain technology are based on a tamper-proof ledger, it is very difficult to break into user accounts.

2. Instant Payment

We all expect mobile payments to be instant, but some transactions still take minutes or hours to complete, even with Bitcoin.

By using blockchain technology, payments can be truly instant. Developers are working on creating even faster networks so you can send money to your friends anywhere in the world. In just a few seconds, your friends will receive the funds on their smartphones.

3. P2P lending

Peer-to-peer (P2P) lending is now booming in the payment industry. In fact, P2P lending has become the fastest growing financial technology industry due to its convenience, low interest rates, and stable return on investment. By using blockchain technology, borrowers can directly obtain loans without the need for traditional banks or financial institutions to intervene.

In addition, blockchain technology can make it safer and more convenient for you to lend money to friends through applications or social accounts (such as Facebook or Twitter).

4. Remittance

The World Bank estimates that the average remittance cost globally is 7.5%, while commercial banks cost more than 10%. If this can be reduced to 5%, consumers around the world will save $16 billion per year.

By removing the need for third parties, blockchain can allow mobile users to transfer money to anyone in the world without having to pay high service and transaction fees. Some companies, such as Abra and Coins.ph, have already achieved this.

5. Mobile Wallet

As we mentioned before, cash and checks will become relics, and even plastic will become a thing of the past thanks to mobile wallets. The convenience and ease of using Apple Pay, Samsung Pay, Android Pay, and digital wallets offered by retailers (like Wal-Mart) are attracting mobile users.

However, the biggest obstacle to overcome is security. Blockchain technology has many functions, such as verifying purchase information through multiple signatures, and blockchain technology will make mobile wallets more secure. Blockchain technology can also increase speed and improve the user experience. Using mobile wallets can also reduce the cost of global payments.

6. Rewards and Loyalty Programs

Consumers love being rewarded for their purchases. Mobile has proven to be a great platform for offering and managing rewards programs, just ask Starbucks. Blockchain technology can improve the way points are traded, because all transactions are recorded in a public ledger, and all merchants can monitor the transactions of points, which is difficult to do today. For example, you can send your Starbucks or airline points to your spouse with just a click.

There is an app called Plutus that allows you to earn digital token rewards whenever you make a transfer or purchase. These rewards rebates can be used anywhere Bitcoin is accepted. In the future, merchants could use this rewards system to reward consumers in various stores. For example, you could use airline rewards points at Starbucks.

7. No bank account required

Whether you live in the United States or Nigeria, there are still millions of people who do not have a bank account. However, now with just a smartphone and no bank account, a person can participate in global e-commerce through blockchain, get a loan, or transfer money securely to friends or family without paying high fees.

8. Wearable devices and the development of the Internet of Things

Mobile payments are expanding beyond smartphones and tablets. Wearable devices such as watches, bracelets and rings are already on the market. In addition, the Internet of Things is also expanding. With blockchain technology, users can store their payment information without worrying about fraud.

However, what is most interesting is how simple blockchain technology will make payments in the future. For example, in the future, you walk into a store to buy milk:

"With a wave of your hand, your smartwatch detects the translucent code on the milk carton, performs a hash function, and the milk is instantly yours."

For the Internet of Things, developers can use blockchain technology to tinker with application programming interfaces (APIs) to simplify connectivity between all your devices. Imagine a refrigerator that can automatically order and pay for your milk when you run out.

Original article: https://medium.com/@johnrampton/8-ways-that-the-blockchain-will-change-mobile-payments-a6cdfb38bb9a#.11p7gedjk
By John Rampton
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/blockchain-will-change-mobile-payments)