Blockchain has the potential to save financial institutions approximately $10 billion in cross-border payment costs by the year 2030, according to a recent report.
Published by digital payment network Ripple, in collaboration with the US Faster Payments Council (FPC) on July 29, the report surveyed 300 payment leaders across the world, from a range of sectors including fintech, banking and retail, across 45 different countries.
Results show that global payments leaders are dissatisfied with legacy rails for cross-border payments.
— Ripple (@Ripple) July 28, 2023
The survey highlighted that 97% of those leaders firmly believe that blockchain technology will play a crucial role in facilitating faster payment systems within the three years.
“Juniper Research supports this notion, pointing to blockchain’s potential to significantly increase savings for financial institutions conducting cross-border transactions – an estimated $10 billion by 2030.”
It was also pointed out that there is a substantial anticipated increase in global cross-border payment flows by the year 2030.
“Global cross-border payment flows are expected to reach $156 trillion – driven by a 5% compound annual growth rate (CAGR)” it was stated.
The report revealed a split in opinions among the surveyed leaders. While 50% of them were confident that most merchants would adopt crypto payments within the next three years, there were varied confidence levels whether it would happen within the next year.
Middle East and African leaders showed the highest level of confidence, with 27% of them believing that most merchants will accept crypto as a payment method within the next year.
Meanwhile, leaders in the APAC region were the least confident, with only 13% believing in the same timeframe. However, across all 300 surveyed leaders worldwide, 17% expressed their belief that such adoption could happen within the next year.