Payments on your FINGERTIPS!
How does it sound? It sounds very technology-oriented and an enhanced mechanism to us.
Well, the dream has now come true as payments as less as cents can be initiated electronically. Not to forget mentioning, the entire mechanism is called ‘Micropayments,’ which is now creating a buzz in the market, especially after the pandemic as people are dedicated to no-contact policy.
It does sound enticing!
Unraveling the entire journey from crypto to micropayments is a pretty interesting concept to know about. For starters, whenever you go shopping or purchase anything online, the payment is processed via your credit/debit cards linked with your banks. Therefore, these institutions have to be trusted with your data which requires higher security.
However, since cryptocurrency has come under the limelight, purchasing products or services in exchange for the same has become much more convenient.
But, what is cryptocurrency?
Crypto is the virtual currency that can be exchanged in place of cash for buying products or services. Emphasizing micropayments, it is an element of the same concept; however, the financial transactions can be of a minimal amount.
All these online payments utilize blockchain technology, an online distributed ledger that keeps all the transactions safe and secure from hackers and stealers.
Undoubtedly, micropayments are one of the top-notch use cases of blockchain tech and are driving the revenue funnel of uncountable industries.
Do you want to acquire a clear understanding of the concept? This article will precisely highlight every important detail regarding the same. So, sit back with a mug of hot chocolate and learn what we’ve got to tell you!
Evolution of Micropayments
The very first question of most users is if micropayments are viable?
Initially, micropayments were not used to the best of their potential due to the absence of the advanced technology that we witness today. Thus, the benefits of micropayments were left unrealized! However, as soon as the second-generation micropayments came into the picture, they gained popularity due to their efficiency and convenience.
Use Cases of Micropayments
– Accessing Content on the Internet
You must have noticed several times that whenever you visit a website for reading articles or blogs, a few of them do not allow you to access the content unless you pay for the same. This concept can be beneficial for people who do not want to buy monthly subscriptions. Therefore, a small amount can be paid to access a particular content piece or a page.
– Granular Metering
Some of the best models of granular metering are:
- Installation of the devices by the government that automatically deducts a micropayment whenever anyone passes the same in place of paying by KM driving.
- Payments can be made for Wi-Fi internet at public places by the minute.
Currently, the blockchain tech is linked to a crypto-currency mechanism for enabling users to make transactions. However, when it comes to micropayments, blockchain could be associated with standard currency.
– Direct Payment via IoT Devices
Authorization of IoT devices to make payments on user’s behalf has become a common activity. The process can be automated if the amounts are minimal; however, a few restrictions or authorizations need to be managed.
Many games allow their players to buy more lives or moves in exchange for a micropayment. Surprisingly, many users willingly pay for the same.
As mentioned above, all the online payment platforms integrate blockchain tech, responsible for the security of transactions and data.
Are you impressed? BECAUSE WE REALLY ARE!
Undoubtedly, building a micropayment or an online money transfer platform seems like a perfect entrepreneurial opportunity since people are going cashless. Therefore, if you are giving it a thought, here’s more for you to learn about blockchain tech before starting the process.
Use Cases of Blockchain in Finance
Payments in banking are highly adopting blockchain tech for the security of people’s bank accounts and transactions.
Unquestionably, banks have been following the bandwagon of digital transformation for quite some time now and have finally acquired victory by introducing seamless payment methods.
– P2P Transfers
The concept of Peer-to-peer transfers involves the exchange of transactions between two parties. With the adoption of blockchain tech, P2P payments became more promising and offered:
- Instant global transactions
- Elimination of chargebacks
- Higher-security from fraud
- Easy money-exchanges
– KYC and Identity Verification
Every bank account holder trusts their money with the bank and wants to keep it secure, which is why authentication and authorization are vital.
Blockchain tech has made it more accessible as it allows financial institutions to register once and enjoy the benefit offered by one-time verification.
– Clearance and Settlement
If we take a look at the traditional methods of banking, it took days to make a bank transfer. However, with the use of the popular blockchain tech, settlements are directly made along with a proper transaction history.
Transactions have become transparent, and the credit goes to the blockchain, eliminating any custodial services and use of regulatory bodies.
Cost of Blockchain-Based App Development
Be it any app that integrates any technology, the overall cost estimation of app development depends on various factors and varies. Therefore, to make it easier for you to understand, mentioned-below are a few most important factors that need to be considered:
- Choice of the platform
- Tech stack used
- Number of features integrated
- UI/UX design
- Developer’s cost
In a Nutshell
There’s nothing wrong with mentioning that blockchain holds immense potential to introduce a massive digital transformation. Today’s market is already witnessing the use of wallets that are offering a seamless and enhanced experience to its users.
The times are not far when well-established businesses or companies will start leveraging the use of blockchain wallets.
So, are you excited to build your own blockchain-based platform?
Connect with the professionals and acquire more insights on your idea to build an efficient blockchain-based mobile app.
Ankit Singh is a seasoned entrepreneur, who has crafted a niche for himself at such a young age. He is a COO and Founder of Techugo. Apart from holding expertise in business operations, he has a keen interest in sharing knowledge about mobile app development through his writing skills. Apart from sailing his business to 4 different countries; India, USA, Canada & UAE, he has catered the app development services with his team to Fortune 200, Global 2000 companies, along with some of the most promising startups as well.