Heaptalk, Jakarta – Payment system has developed from time to time and demonstrated rapid alteration along with the vast digital transformation. The shift of the system is a part of people’s effort to fix deficiencies in order to move forward in the future. The new methods of payment system have appeared, starting from real-time cross-border payments to Blockchain, cryptocurrencies, the Libra and Diem of Facebook. Central Bank Digital Currencies (CBDC) and stable coin that recently surprising the world, also adding a series of payment system types. The emergence of the new payment method, further, has made traditional banking should critically brainstorm about their business model to keep up with the times.
However, on the customers’ side, the appearance of these new payment systems has raised many questions concerning its position today compared to traditional payment, its business opportunities in the future, and the possibility of the system’s downfall. Anish Jain, the Managing Director and CEO of Wadzpay, shares his insight at Virtual Fintech Forum panel, with the theme of “Future of Banking Payments: Role of Blockchain and Crypto”. In its sharing session, Anish elaborated that, nowadays, Blockchain is mature enough and ready to compete in the mainstream environment.
The benefits brought by Blockchain have successfully filled the particular part that the traditional system has failed to address. The character of the traditional system that is clunky, and several mediators involved in the system that makes the end payment very expensive are the example of the system’s shortcomings. A new effective, faster, and efficient payment system is needed to support benefit all parties, and Blockchain can meet the challenge.
In addition, Anish, the ex-skilled senior worker of MasterCard and American Express, also stated that Blockchain is also trying to bring society, including the unbanked and underbanked that currently do not have access to banking themselves into the financial ecosystem. Later, they use those examples to change or affect the traditional payment ecosystem. It does this by bringing the unbanked population into the mainstream, which is still running on the other legacy system with hybrid solutions, similar to what is happening with electric cars. Many blockchain initial use cases are from a consumer perspective. imagine if all the blockchain features can embed into smart money, building smart contracts into smart money, creating all kinds of potential social goods. Another use case is for disaster or relief funds. Blockchain allows for a tailor-made offering with speedy cash-less relief and the ability to ensure that the relief funding goes to the right people, for the right purposes.
Looking forward, in responding to the newest payment system, Anish viewed that CBDC will still benefit people for improvements in welfare distribution, loan disbursements, and security. Governments and central banks favour CBDCs due to their benefits, convenience, cost-savings, and also surveillance. However, many sections of the general public will still prefer alternative solutions.
In the future, Anish speculated that through the new payment system, any payout, settlements, and transfers will be significantly faster and near-instant in the near future, compared to the three days settlements can take in today’s world.
