Future is the Blockchain payment systems
In the 21st century, digital technologies moved so far that even discussions are underway to replace the usual currency with the digital money. Trade, personal data management and advertising companies are moving to some other ways of doing business; and banks are creating their proprietary crypto-currencies; and they are investing in the Blockchain technology. That is a question, why it's worthwhile for both the large and small players in the Internet market to consider, where are the advantages the new technology are providing to business.
Internet trading problems
Any payment system is playing a major role in online sales, and that is used by a seller to accept payments for goods or services on its website. Reliability, safety and easement of such a system are influencing particularly not only the speed of any payment, but also the conversion in the shopping cart.
As a rule, the sellers are facing 4 major problems:
Payment system commission amount. Often, such fees and commissions are too high and are not justified. They depend on the monthly turnover and type of business. And if the online store could be regarded as the high risky business, the chances of connecting to the payment system could be reduced to a zero level, or, at best, the commission and fees amount would be increased.
Providing fast connection with risks of minimal bureaucratic costs.
Easy integration. It’s ideal, if a seller is able to connect the receipt of payments to the proprietary site.
Speed of receiving and withdrawing payments from the personal account of a seller.
Why the Blockchain technology is ideally fitting the financial services and other industries sectors
Blockchain technology and crypto currencies turned out to be a boom in 2017, and these terms do not leave the news headlines promising really terrific changes in the life of mankind. The global corporations’ mastodons master the new technology introducing it in the operating business processes; many other companies are even starting to transfer data to the Blockchain register.
And what is Blockchain? Blocking is a technology, which forms the basis for creating a decentralized register for data storage, and this decentralized register appears to be the foundation for crypto currencies that are later used for paying for goods and services.
In 2017, a large amount of such digital currencies appeared. But Bitcoin and Ethereum, perhaps, still remain the most recognizable of them.
The major advantage of the Blockchain technology is that payments, transfers, data storage does not require any involvement of third parties or employees, as it happens in a bank or in an archive office. Data stored within the Blockchain system is eternal and is not subjected to changes from outside; and hence to fraud or other illegal transactions.
A seller using a payment system based on Blockchain is obtaining several advantages:
Low or zero commissions and fees, since intermediaries are eliminated within the process of banking services
Fast cross-border transfers
Increased payments security
Number of advantages not directly related to receiving funds, but indirectly affecting the increase in conversion in the online purchases
In 2017, financial instruments already began to appear based on the Blockchain technology; and this could be explained by the popularization of crypto currency all around the world, its convenience and safety for users.
Dagaz Global, the new generation payment system, appears to be one of such projects, the project coming out from Switzerland, which, according to the developers, is designed to turn over the usual idea of payments and trade using Internet. Particular attention should be paid to the project by online entrepreneurs and online stores.
What really developers and Marcus Stoll, the project major inspirer, are promising to us:
Payments in crypto currency and in customary for us means of payment
Lack of chargebacks (return payments), complete exclusion of return payments within the system. Such chargebacks are only possible, if there is a clear violation of the rules of trade or non-conformity of goods, but they will be made according to the pre-established rules and without losses for the seller
Security, information is stored in a distributed registry and is available for any member of the service chain
Transparency is the basis. Actions and data are available for examination to both the seller and the buyer, while the anonymity of a buyer is preserved
Seller's rating shall add trust to each online store, which allows to increase profitability
Internal transfers with zero commissions and low commissions, from 0.5%, for sellers upon connection to the payment acceptance.
For sellers the project looks quite tempting and optimistic. We hope that after implementing such projects in the near future, Internet commerce will become transparent and safe for any buyer, simplifying the live of sellers and increasing profits by dozens of times.