Stablecoins provide a wide variety of use cases to businesses, allowing them to improve upon current financial models.
Increased speed, optimised price, and greater autonomy are among the significant benefits offered to those who choose to use stablecoins within business practices. The best stablecoins provide benefits to both businesses and consumers alike – from the business side, the potential effects of this are two-fold, both for themselves and their consumers.
Benefits
- Payments can be made and settled in real-time, compared to waiting for a payment processor or bank to settle and provide access to the funds, which can sometimes leave a merchant waiting for days.
- Safety is improved as it’s a direct wallet-to-wallet transaction, with no intermittent or third party involvement, reducing the risk of failure, loss, etc.
- Elimination of international payments and the associated fees, thus allowing the company to generate more revenue from overseas business processes.
- Increased data-privacy with a direct wallet-to-wallet interaction.
- The process of escrow becomes automatic due to the nature of smart contracts.
- New crypto customers.
Real-time Payments
Stablecoins are a huge time saver for businesses. Providing the sender and receiver have initiated the stablecoin transaction, the entire process can be completed with no wait time or middleman required – on the blockchain, the payment settles in real-time. This increases the fluidity of business operations by not having to wait for payments to clear. The positive repercussions of this in regard to efficiency are far-reaching for businesses in any industry.
Increased Safety
Due to the lack of a third party or middleman, stablecoins offer greater safety when transacting between businesses (assuming that both parties involved are trustworthy). Removing any extra factors or steps out of an equation means streamlining the process, and in the case of paying with stablecoins, the best route is from A to B.
In regards to transacting between a consumer and a business, the consumer retains sole responsibility in making the payment – no extra emails need to be sent or follow-up phone calls need to be made. Once the blockchain settles the transaction, the interaction between both parties has finished.
International Payments
International payments often have long strings of numbers attached, exorbitant fees and huge margins for error. Making international payments with stablecoins is arguably its biggest ‘pro’. Fees and cost to do so are minimal because stablecoins are not bound by the location of their creation. Combined with the fact consumers can send money from any country in the world, the profit potential for a business skyrockets due to an expanded consumer base and more revenue generation.
International Payments
International payments often have long strings of numbers attached, exorbitant fees and huge margins for error. Making international payments with stablecoins is arguably its biggest ‘pro’. Fees and cost to do so are minimal because stablecoins are not bound by the location of their creation. Combined with the fact consumers can send money from any country in the world, the profit potential for a business skyrockets due to an expanded consumer base and more revenue generation.
Improved Privacy
Privacy is an important consideration for many people. With how blockchain technology works, businesses can improve their privacy of holdings, wallets, assets, and resources. The consumers of the business will also have confidence in their transactions being solely between the business and themselves, thus increasing the level of trust in the company from consumers.
Escrow Automation
This process becomes automated as the smart contracts will be programmed to validate escrow terms and conditions. This cuts out the ‘middlemen’, which in this case are institutions. Stablecoins give and provide price stability to these smart contracts, which are subject to suffering significant losses from cryptocurrency market volatility.
If you want to learn more about stablecoins you can check out our full Poundtoken stablecoin guide here guide to stablecoins.
