3 Ways Multinational Companies Are Using Crypto

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PYMNTS’ research on cryptocurrency found that 58% of businesses that operate in six or more markets use at least one cryptocurrency.

The use of cryptocurrency by these businesses could simply be convenience, born out of a desire for convenience, as it offers unique benefits for cross-border trade. We also found that multinational companies typically use cryptocurrency in at least one of these three ways:

1. Smart contracts

Global companies are using smart contracts to accelerate cross-border trade. These contracts are programmed to identify specific conditions that require certain responses based on data stored on a blockchain.

Once these conditions are met, payments can be initiated. Smart contracts use self-executing and self-verifying code that allows organizations to quickly initiate and authenticate transactions at scale. For example, an e-commerce business may want to onboard a third-party vendor before unveiling a new product to avoid supply chain slowdowns due to late payments.

Blockchain technologies provide enhanced security, while cryptocurrencies provide fast and inexpensive payment processing, which means smart contracts can automate complex onboarding processes and remove significant uncertainty from strategies. cross-border growth.

2. Mobile wallets

The use of mobile wallets such as Apple Pay has declined as contactless payments have become easier to use, with many contactless technologies now included by default in credit or debit cards. But the rise of cryptocurrencies as a viable payment option has changed the course for the future of mobile wallets, as cryptocurrency users leverage the convenience of mobile wallets to allow customers to make shopping on international e-commerce sites and sending funds across borders.

3. Security

Companies with cross-border operations face an expensive onboarding process to comply with Know Your Customer / Know Your Business regulations. With blockchain, organizations can authenticate users quickly and securely, while cryptocurrency enables rapid cross-border payments to suppliers and contractors.

For more on this topic, download your copy of The Corporate Treasury Shift: Asset Allocation And The New Cryptocurrency Option, a PYMNTS study sponsored by Circle.

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NEW PYMNTS DATA: AUTHENTICATION OF IDENTITIES IN THE DIGITAL ECONOMY – DECEMBER 2021

By the way: More than half of US consumers believe that biometric authentication methods are faster, more convenient and more reliable than passwords or PINs. So why do less than 10% use them? PYMNTS, in collaboration with Mitek, surveyed over 2,200 consumers to better define this perception in relation to the usage gap and identify ways companies can increase usage.

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