PYMNTS research into cryptocurrency has found that 58% of firms that operate in six or more markets use at least one cryptocurrency.
These companies’ use of cryptocurrency might just be practical, born from a desire for more convenience, as offers unique benefits for cross-border commerce. We also found that multinational firms will typically use cryptocurrency in at least one of these three ways:
1. Smart contracts
Global companies use smart contracts to speed cross-border commerce. These contracts are programmed to identify specific conditions that require certain responses based on data stored on a blockchain.
Once those conditions are made, payments can be initiated. Smart contracts use self-executing, auto-verifying codes that let organizations to swiftly initiate and authenticate transactions at scale. For example, an eCommerce company might want to onboard a third-party supplier prior to unveiling a new product to avoid supply chain slowdowns over late payments.
Blockchain technologies provide strong security, while cryptocurrencies offer swift, low-cost payments processing, which means smart contracts can automate complex onboarding processes and remove significant uncertainty from cross-border growth strategies.
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2. Mobile wallets
The use of mobile wallets such as Apple Pay has declined as contactless payments have become easier to use, with many contactless technologies now included by default in credit or debit cards. But the rise of cryptocurrencies as a viable payment option has shifted the course of mobile wallets’ future, as cryptocurrency users leverage mobile wallets’ convenience to let customers shop on international eCommerce sites and send cross-border funds.
3. Security
Companies with cross-border operations must deal with an expensive onboarding process to comply with know your customer/know your business regulations. With blockchain, organizations can authenticate users swiftly and securely, while cryptocurrency allows for speedy cross-border payments to vendors and contractors.
To learn more about this topic, download your copy of The Corporate Treasury Shift: Asset Allocation And The New Cryptocurrency Option, a PYMNTS study sponsored by Circle.
