The Crypto Edge: How 60% of Global MNCs Use Digital Assets for Payment

  • August 10, 2022
  • Jennifer Moore

A leading number of global corporations are citing a preference for using digital assets for cross-border payment settlements. Bitcoin, the world’s first cryptocurrency, stands ahead of its peers in terms of usage at 31%, followed by the USDC Stablecoin(29%) and Ethereum(21%). While this may be in contrast to worldwide governments’ stance on crypto regulation and framework setup, the merits posited by cryptocurrencies and decentralized blockchain technology are too good to be ignored. 

Global Corporate Crypto Usage

A Circle survey report in partnership with Payments data platform comprising the top multinational companies revealed almost 58%(57.6%, to be precise) of MNCs utilize at least one type of cryptocurrency. Circle is the underlying P2P payments platform of USDC stablecoin. As explained above, Bitcoin remains a market leader in terms of crypto usage, followed by USDC and ETH. 84% of firms operating in above 10 countries use at least one digital asset for transactions, with BTC being the most widespread. The 250 executives participating in the April survey all ran international corporations generating at least $10 million in annual global revenue.  

Also Read: Is Crypto A Wise Choice For Sri Lankans Amid Economic Catastrophe?

The Executive Perspective

Global industry leaders view smart contracts and cross-border settlements as the primary use cases of cryptocurrencies. Some cited a reduction in transaction processing, while others presented easier transfer procedures as the reasons behind this crypto preference. Cheaper transaction processing charges are in fact a key factor behind the growing worldwide use of crypto for remittance, where expatriates working away from their homeland maximize savings and send money to their dear ones.  

Also Read: Crypto Payment Processor BillBitcoins Is Gaining Popularity Among Global Market Firms

B2B Consumer Considerations

Despite growing mainstream relevance and over a trillion dollar market capitalization, only 1 out of 10 participating financial institutions offered B2B customers an option to use cryptocurrency. While there is considerable client interest, the option of offering blockchain and crypto solutions requires consideration of technical and regulatory constraints along with commercial viability. However, the scenario is about to change with at least 73% of Financial Institutions(FI) acknowledging crypto expansion plans.  

Blockchain development companies specializing in fintech and financial services offer these options, such as HashCash Consultants. Along with white label blockchain solutions for exchange architecture or payment processors, the company even offers crypto banking solutions. 

Crypto Usage Across MNCs

MNCs conventionally use cryptos in one of the following 3 ways:

a) Smart Contracts

Worldwide companies utilize blockchain smart contracts to accelerate international remittance. The contracts are programmed to auto-execute upon meeting the pre-defined conditions. The conditions are stored using blockchain technology. 

Smart contracts initiate payment once the conditions are met. The process utilizes auto-validation and execution of codes, allowing organizations to rapidly initiate and authenticate transactions at scale. An example may include the instance where an eCommerce company opts to onboard a 3rd party supplier before launching a new product for the process of avoiding supply chain setbacks due to late payments. 

Blockchain offers robust enforcement through strong security. On the other hand, cryptos present quick affordable payment processing. This means smart contracts can be used for the automation of challenging onboarding processes and eliminate notable uncertainty from international growth strategies. 

b) Mobile Wallets

Mobile wallet applications such as Apple Pay may have declined with contactless payments becoming foolproof. Several contactless technologies are now in fact available in default credit or debit cards. The growing preference for cryptocurrencies as a functional payment method has triggered a change in the future of mobile wallets. Crypto users can leverage their assets to purchase across eCommerce websites and make subsequent payments.

c) Security

International corporations also need to deal with costly onboarding processes for KYC regulation compliances. Blockchain facilitates them in reducing their workload, securing and accelerating user authentication. Meanwhile, cryptocurrencies can be easily the payment choice for cross-border transactions with vendors and contractors. 

Conclusion

The rising relevance of cryptocurrencies in solving real-world problems is not a mere conceptual fad anymore. International corporations are regularly finding newer ways to utilize them, which will inadvertently lead to the mainstay of digital assets in the near future.

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