The rapid development of the Internet has led to the rapid growth of cross-border e-commerce, and cross-border payment has become a hotspot in the field of third-party payment. However, traditional cross-border payment has many problems: high settlement costs, low settlement efficiency, low capital security, complicated intermediate payment, time-consuming and laborious, etc., which will affect cross-border trade. Nowadays, it is becoming a new trend to seek a new cross-border payment model through the application of blockchain technology.
Blockchain technology is designed to reduce the risk of trust through decentralized technology. The application of blockchain technology in cross-border payment enables cross-border transactions to directly interact with each other without involving other intermediaries. Moreover, as a billing system, the blockchain can realize the transmission of cross-border payment ownership, thereby improving the processing efficiency of cross-border payment services.
- Improve cross-border payment efficiency. All the nodes in the blockchain share the books, and the transactions between the nodes pass the point-to-point shortcoming. After the cross-border payment applies the blockchain, there is no need to involve the intermediary, which not only eliminates the time cost of clearing between different payment institutions, but also can greatly Shorten the trading cycle.
- Reduce settlement costs. In the blockchain, since the payment and clearing process does not require the participation of intermediaries, this part of the cost can be saved. At the same time, because the blockchain can realize the whole network accounting, time order and not tampering, it also greatly reduces the traditional Credit maintenance costs in cross-border payments.
- Reduce regulatory costs. On the blockchain, each transaction is stamped with a precise timestamp, which ensures that all trading activity can be tracked and queried, reducing the regulatory costs of cross-border payment transactions.
- Restructure the credit system. The blockchain technology provides a new statistical method for credit information data for the improvement of the social credit system. The blockchain-based credit system has the characteristics of full process tracking and cannot be faked. This provides a new solution for financial institutions around the world to implement the customer identification process and fulfill their understanding of customer obligations during the transaction process.
For blockchain technology, cross-border payment is just one of many application scenarios.