Fintech Startup Will Use Blockchain To Improve Payment Processes

• Toshendra Kumar Sharma
• February 22, 2019

We all know that Blockchain garnered the world’s attention because of cryptocurrencies. However, the trends changed over the period of time, and today we find its use cases in different business verticals. The Blockchain is a distribute ledger technology which enables peer-to-peer transaction on a decentralized platform. The technology is now a decade old, and in this time frame, it has established itself as a technology for the future. Comprehending the growing demand in the market and to provide advanced experience, companies are now trying to implement Blockchain technology as a part of their mainstream business operations. Finance remains the conventional area of application of Blockchain technology.

 

Why Are Fintech Companies Relying On Blockchain Technology?

The Blockchain is one technology which the world is talking about. It’s a distributed ledger where every information gets an entry in the ledger in chronological order. Time-stamping ensures that it becomes easy to track any information. With the help of certain features of Blockchain, tracking of information becomes easy. Moreover, data security is yet another important feature that Blockchain offers which helps in establishing trust in the system.

 

Fintech companies are trying to explore these aspects of Blockchain and implement it as a part of mainstream business operations.

 

What Is The New Development In The Fintech Domain?

As per the recent reports, SDK. Finance has joined hands with Oracle to use its Blockchain platform to boost its payment process and cut down the presence of intermediaries.

 

One of the most significant drawbacks of the current financial system is the presence of intermediaries. With them, the cost of transaction increases and also the time consumption for validation also escalates. With the help of Blockchain, we can eliminate the need for having a third party. Since Blockchain propagates the idea of direct interaction between the two parties, there is no need for the third party. It eventually saves time and money.

 

SDK.finance is a fintech company from Europe. It offers payment platform to companies and banks. The company has also been recognized as the best Fintech Startup by the Central European Startups Awards. The company is known to promote inventiveness in business.

 

The company’s decision to sync Oracle platform SDK.finance will help in promoting the use of Blockchain and making it a part of mainstream business operations. This will not only help in boosting faster financial transactions but will also ake the system cost-effective and secure.

 

With this SDK.finance aims at removing the intermediary system which currently haunts the financial system.

 

Why Blockchain?

As mentioned above, Blockchain offers a transparent and secure platform which enables the easy transaction. One of the biggest apprehensions that surround digital transaction is data security, heavy processing fees and time. Blockchain provides the right solution with its decentralized platform and peer-to-peer interaction. DLT or Blockchain completely eradicates the need of having a third party.

 

In the conventional system of cross-border transaction, it takes days for approval and validation. With Blockchain there is no need for the third party, thus making it easy for the interested party to do business and make payments. It eventually fastens business operations.

 

To sum in simple words, Blockchain is benefitting the Fintech companies in the following ways:

1. Track the complete lifecycle of a financial transaction
2. Ensures that financial services are technologically advanced and functional
3. Promotes the creation of financial products at a lower cost

 

 

What Else Is Happening?

Well, SDK.financne is not the first company which is working in this domain. Netpay International which is a global online payment firm is working together with BNC LedgerTech (an Israeli firm) to use Blockchain platform and collaborate it with its services to reduce the operational cost. Netpay is the fourth firm to make use of Israeli BNC Ledger.

 

The Future

 

With the recent phase of development, we can say that Blockchain has massively impacted every nation and companies. Its ease of use, the versatility of applications and widespread usage makes this technology one of the most popular technologies of the present and the future. The financial transaction remains the core of every business operations and if we have a system which can ensure faster transaction with the security of data. All these developments are paving the way for a new era of development.