Crypto payments and decentralised finance (DeFi) are here to stay, and ignoring them would be at your own peril.
As you must already know, the world’s financial services models are rapidly changing, and increasingly, individuals and institutional investors are expressing interest in the use of crypto and switching to crypto payments. The advent of Web3 has repositioned banking and the financial services industry for greater inclusion and adaptability. The permissionless and transparent nature of crypto payments is engendering a new wave of acceptance and adoption for crypto. In this article, we will discuss some of the key benefits of switching to crypto payments and how Web3 is solving existing Web2 payment issues.
Dismantling Web2
Web2 has been the standard for as long as we know. With the coming of the Internet, interconnected banking, online financial clearing, and instant money transfers became the norm. With all its benefits, the existing system still has not addressed some of the pressing issues that affect the people it is meant to serve.
Some of these issues include:
- High barriers of entry
- Institutional exclusion
- A lack of transparency
- Transaction and transfer delays
- Low interest on savings account
- Rigid Payment Systems
Also, traditional Web2 payment options are time-consuming and can often create intense workloads for platform administrators. Activities such as cheque clearing are cumbersome, with most systems suffering intermittent service disruptions. Users have complained of the slow rate of concluding transactions and the archaic idea that certain services can only be made available during business hours.
These conditions continue to support Web2’s financial models and infrastructure, making them grossly inadequate to meet the demands of the client and investors in today’s financial markets.
Pushing Crypto Payments Forward
The challenges posed by Web2 are the underlying motivation for the adoption of Web3. Web3 offers fully decentralised, democratic, and accessible crypto payment options and aggregate infrastructure for all parties, regardless of whether you are an institutional investor or a retail client.
Web3 is an entire ecosystem that provides financial inclusion opportunities to traditionally disenfranchised segments of the world’s population. It also offers traditional operators the opportunity to build new markets and develop new products for a budding separate market segment.
The openness of crypto payments is irresistible.
Benefits of crypto and DeFi payments
- Open, decentralised, and transparent. These qualities are just a few that set crypto payments apart from traditional finance. The open nature of crypto payments provides users, lenders, and borrowers with useful insights that support informed decision-making.
- Another amazing benefit of crypto payments is their non-custodial nature. What this means is that all funds are held by the user rather than by unnecessary intermediaries or government agencies.
- Crypto payments facilitate faster transactions at a very minimal cost.
- Investors in crypto have, over time, made consistent profits from their investment, making it one of the most stable investment asset classes.
- Cryptos can also serve as a means to store value and hedge against inflation and/or market uncertainty.
Crypto payments are here to stay, and you can’t afford to ignore them.
