3 Ways Multinationals Are Leveraging Crypto, Blockchain

3 Ways Multinationals Are Leveraging Crypto, Blockchain
3 Ways Multinationals Are Leveraging Crypto, Blockchain

When an e-commerce brand engages with a third-party supplier or manufacturer before launching a new product, smart contracts powered by blockchain technology and cryptocurrency can help them avert future supply chain disruptions due to slow payments or authentication processes.

That’s just one way successful multinational firms are leveraging the unique properties of cryptocurrencies as part of their growth strategies, according to “The Corporate Treasury Shift,” a PYMNTS and Circle collaboration based on a survey of 250 multinational financial institutions.

Get the report: Corporate Treasury Shift

In fact, PYMNTS research shows that 58% of firms operating in six or more markets use at least one cryptocurrency.

Driving smart contracts

For multinational companies, cryptocurrency offers unique advantages for trading across national borders. In the report, PYMNTS identifies three ways multinational firms are using cryptocurrency.

One is to deploy blockchain technology and cryptocurrency to power the smart contracts that global businesses use to accelerate trade across borders.

Smart contracts are programmed to identify specific conditions that require specific responses based on data stored on a blockchain. Smart contracts are self-executing, automatically validating codes that allow organizations to quickly initiate and authenticate transactions at scale.

Change mobile wallet usage

The emergence of cryptocurrencies as a viable payment option has changed the future of mobile wallets, as cryptocurrency users leverage the convenience of mobile wallets to shop on international e-commerce sites and send money across borders.

Incorporating cryptocurrency functionality provides e-commerce brands with a simple solution to significant cross-border barriers, including currency and exchange rate headaches.

Cryptocurrency transfers are affordable and secure, making it easier for consumers to trade globally at “local” rates while paying or receiving money seamlessly.

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Secure onboarding, transactions

Blockchain technology and cryptocurrency also facilitate Know Your Customer (KYC)/Know Your Business (KYB) onboarding and transaction management. Companies with cross-border operations understand that a comprehensive onboarding process is critical to regulatory compliance under current KYC/KYB mandates.

Blockchain technology allows organizations to authenticate users quickly and securely, while cryptocurrency can enable organizations to expedite cross-border payments, including deposits and advance payments that ensure suppliers and contractors can meet their obligations.

Future-proof trade, trade

Blockchain technology and cryptocurrency also have other use cases for cross-border payments, such as money transfers, Dante A. Disparte, chief strategy officer and head of global policy at Circle, told PYMNTS in a November 2021 interview.

Read more: Stablecoins offer always-on payments to consumers whose needs do not fit within bank opening hours

In a nod to the technology underlying the issuance and maintenance of stablecoins, Disparte said blockchain-powered solutions “enable people to have more control and more choice in how they send, spend, save and secure their money.”

Most financial institutions and companies with cross-border operations see virtual currencies as a permanent part of their customers’ future and their own.

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NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS WITH STRONG DEMAND FOR SUPER APPS

About: The findings of PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy”, a collaboration with PayPal, analyzed the responses of 9,904 consumers in Australia, Germany, the UK and the US and showed strong demand for a single multi-functional super app instead of using dozens of individuals.

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