As per a survey by Ripple and Faster Payments, 300 payment providers from 45 countries opine that blockchain technology and cryptocurrencies have the potential to enhance the traditional finance industry.
The interviewed providers believe that cryptocurrencies can offer faster payment and settlement processing while simultaneously making them more transparent and accessible to individuals, which is not possible with the current financial systems.
The industry leaders are optimistic that the latest technologies will speed up payments in the next three years.
However, this requires more clarity in the regulation of the crypto industry and ensuring high-level security for payments.
Despite the relatively low volume of cryptocurrency payments compared to traditional payments, the number of settlements using digital assets is rapidly increasing.
The US alone has seen a jump of 350% in the past three years, with large companies such as Stripe, Worldpay, and Checkout.com adding support for stablecoins for settlements.
The survey showed that 90% of payment processors surveyed believe that cryptocurrencies can lower the cost of international transactions, and 75% expect a reduction in domestic payments’ cost.
In addition to saving on costs, cryptocurrencies and blockchain can eliminate the need for pre-financing, according to the study’s participants.
Over half of the respondents are considering using cryptocurrencies, while only 17% currently support payments with crypto assets.
While almost all respondents are concerned about the environmental impact of cryptocurrencies, most payment company executives are already familiar with the greener Proof-of-Stake (PoS) consensus algorithm.
According to a Ripple study conducted last year, over 70% of financial firms believe in the potential of central bank digital currencies.