Blockchain solutions for finance play a major role in sorting the challenges of traditional banking. This advanced technology helps enhance the efficiency, security, and trust in financial transactions. Blockchain inclusion also mitigates the financial risks and improves the user experience. Smart contracts make way for transparency and security in the FinTech industry.
Circle is the primary use case providing a FinTech solution by developing P2P payment technology. The Circle Pay Platform developed by this Blockchain company allows users to send, store, and receive traditional currency. With cryptocurrency adoption in FinTech, the game has changed, and users are turning towards this mode of payment because of added security and transparency.
Circle Pay is now available in 29 countries and provides all the cryptocurrency transactions on one platform. Users can easily invest in Ethereum, Bitcoin, ZCash, Litecoin, EOS, BAT, etc. Blockchain and financial inclusion are helping customers with instant cashouts to their debit cards; a group of friends can pay through text, and you can send money in a chat.
This new internet financial system delivers the largest stablecoin to users. Circle Pay supports EURC and USDC. They shorten the users’ payment time, no extra cost is involved, and customer support by Circle is available 24*7. It is helping with cross-border payments with Blockchain by using USDC and EURC. The company’s global partners, such as Visa Card, Coinbase, MoneyGram, MasterCard, etc., are witnessing this platform as a revolution.
Circle Pay is helping users maintain data privacy in financial transactions, manage funds securely, embed Web3 wallets, make cryptocurrency movement easier, and settle remittances within seconds.
Source: Circle
Analyzing The Blockchain Solutions for Finance Statistically
The largest FinTech market will be digital investments that amount to $112.90 billion by 2023, growing at a CAGR of 33.6%. The number of users will increase to 5.48 billion by 2024. The digital payments market may rise to $14.78 trillion by 2027.
Source: statista.com
The Blockchain in payment processing has shown remarkable growth in recent years. The FinTech Blockchain market will be ever-increasing, from $3.17 billion in 2023 to $21.67 billion by 2028. This market has impressive growth registered with an annual CAGR of 46.92%. Even the FinTech market has witnessed the inclusion of cybersecurity and data privacy solutions along with Blockchain technology. It will majorly help with threat detection and fraud prevention.
The global Blockchain technology market provides cryptocurrency in financial technology by increasing its valuation from $10.41 billion in 2023 to $388.44 billion by 2032. The expected CAGR percentage valuation in the forecast period is 82.8%.
The FinTech market share across the 48 FinTech unicorns has increased by over $187 billion, with a more than 1% increase under the global valuation. The financial services market is projected to reach $26.5 trillion by 2022. This is possible because of the versatile FinTech app development services provided by reputed companies using their carefully designed methodologies leveraging the advantages of digital platforms.
What Are The Challenges Faced By The FinTech Industry?
The FinTech industry challenges are still prominent in 2023 because of the increased frauds and threats arising from cyber threats. The hackers are finding ways and means to hack the inner core of financial companies. The applicability of regulatory compliance in FinTech is the only solution. The most practical challenges faced are:
- Almost 23.4% of FinTech organizations face the biggest challenge of finding and retaining talent.
- Customer acquisition and revenue generation are two other prominent challenges FinTech companies and unicorns face.
- Cyber threats and frauds are increasingly penetrating, disturbing the entire financial ecosystem.
- The digital identity in FinTech is also at stake because of the increased cases of cloning by hackers. It has made it difficult to find the investors and capital to grow the FinTech product offerings.
The Blockchain use cases in banking, retail, supply chain, etc., are making it possible to address these challenges. Let us walk you through how Blockchain is proving helpful.
Blockchain in FinTech Industry: How Is It Addressing the Major Challenges?
- Decentralized Platform: Blockchain helps with Decentralized Finance (DeFi) solutions to the FinTech industry. It makes the transactions encrypted, secured, and tamper-proof. There is a reduced risk of unauthorized access and fraud with the help of Blockchain use.
- Increased Efficiency: Using manual paperwork and traditional financial systems decreases with Blockchain. The Blockchain for KYC (Know Your Customer) decreases the work of banks, financial institutions, retail sectors, etc., by automating the details and streamlining the process.
- Leveraging the Digital Payments: The use of Blockchain in FinTech is helping leverage this advanced technology to facilitate financial transactions. With Blockchain Security in FinTech, mobile banking, internet banking, and other modes of digital payment systems will be protected 360 degrees. The trading of securities also becomes secure and safe.
- No More Errors: Whether using Blockchain for fraud prevention in financial transactions or reducing manual errors, it will carry out the work seamlessly. The users will be empowered with utmost transparency and reduced operational costs.
Partner With Right FinTech App Development Company!
The FinTech industry is growing by easing the work of users. Now, doing financial transactions at lightning-fast speed is possible. Businesses can hire a reputed FinTech app development company, Tntra. We provide personalized FinTech solutions and software product engineering services to include growth factors in your business.
Call Tntra experts today to resolve the financial problems and provide meaningful solutions to the customers.
