In recent years, we've witnessed a significant shift from cash transactions to digital payments, fundamentally altering the way we purchase goods and conduct business online. The surge in online payments has revolutionized commerce, especially as the Covid-19 pandemic accelerated the growth of online payments and E-commerce, leading to an unprecedented boom in the sector.
As we stand on the brink of a major transformation in global commerce, Web3, the next evolution of the internet driven by blockchain technology, is set to revolutionize traditional payment systems. With its emphasis on decentralization, enhanced security, and improved efficiency, Web3 is poised to redefine how payments are made.
This blog dives into the impact of Web3 payments on global commerce, exploring the technical aspects and the exciting possibility that lie ahead.
Gone are days of cumbersome, centralized transaction systems prone to fraud and inefficiency. Web3 ushers in a new era – one built on security, transparency, and user-centric approach.
Centralized Woes: The Limitation of Traditional Payments
Presently, global commerce heavily relies on centralized payment systems, predominantly governed by financial institutions such as banks, clearing houses, and credit card networks. However, these systems encounter various limitations:
- High Transaction Fees: Cross-border transactions often incur substantial fees, burdening both businesses and consumers alike. According to The World Bank, the global average cost of remittance stood at approximately 6.35% in the first quarter of 2024.
- Lengthy Settlement Times: Traditional settlement processes are plagued by delays, impeding cash flows, and introducing logistical hurdles for businesses.
- Limited Accessibility: Millions of individuals lack access to traditional banking services, highlighting a significant barrier to financial inclusion and transparency between financial institutions and customers.
- Identity Verification Challenges: Within centralized systems, verifying the authenticity of customers poses a considerable challenge for E-commerce retailers, leading to potential inaccuracies and security risks.
- International Complexity: Customers often encounter barriers when attempting to make international purchases, including varying price structures, supported payment modes and tax rates.
To address the complexities of centralized transaction systems, which are fraught with vulnerabilities and inefficiencies, Web3 introduces a new era characterized by security, transparency, and a user-centric approach.
Spotlight on the Global B2B Payments Market
The global B2B payments market is undergoing a major transformative phase, with increasing digitalization blurring borders and giving businesses an edge to expand into new markets. In 2023, the global market size for B2B payments was estimated at nearly $39.3 trillion. According to industry reports, the market is projected to exceed $56.1 trillion by 2030.
While domestic B2B payments generally operate smoothly within established frameworks, cross-border transactions introduce a host of challenges. These include navigating different regulatory environments, dealing with currency exchange rates, managing higher transaction costs, and coping with longer processing times due to the involvement of multiple intermediaries. As businesses increasingly expand their global reach, the complexity and cost associated with cross-border payments become significant hurdles that need to be addressed.
Web3 Payments: A Paradigm Shift
Unlike traditional payments, Web3 payments, grounded in blockchain technology, present a transformative alternative:
- Decentralization: Transactions are processed across a network of computers, eliminating intermediaries, and reducing dependency on centralized authorities.
- Enhanced Security: Through cryptographic techniques, blockchain technology ensures the immutability and transparency of transactions, bolstering security measures.
- Expedited Settlements: Blockchain transactions can be settled within minutes, significantly improving cash flow management for businesses.
- Financial Inclusion: Web3 holds the potential to empower individuals without access to traditional banking services, enabling them to participate in the global economy through self-custody of digital assets.
Zeebu Transforming Telecom Finance with Blockchain and DeFi
Zeebu is at the forefront of transforming how telecom carriers handle settlements, bringing unprecedented efficiency, security, and transparency to the industry. In a sector where cross-border transactions and complex billing systems often lead to delays and high costs, Zeebu is redefining the landscape by introducing decentralized payment solutions tailored specifically for telecom carriers. The key to this transformation lies in Zeebu’s ability to streamline invoicing and settlement processes, reducing the reliance on traditional banking systems and intermediaries that have long plagued the industry with inefficiencies.
Today, Zeebu platform is used by over 100 institutional clients and has settled more than $3.8 billion in transactions.
Looking to the Future
While Zeebu is already revolutionizing settlements within the telecom carrier space, the vision extends far beyond this industry. The Zeebu Protocol represents the next phase of Zeebu's mission, bringing even greater decentralization and liquidity to the process. This innovative protocol introduces a comprehensive liquidity protocol that empowers various stakeholders—including liquidity providers, deployers, and delegators—to participate actively in the ecosystem. By doing so, the Zeebu Protocol makes the settlement process not only more decentralized but also more secure and scalable.
By increasing participation from a broader range of stakeholders, the protocol fosters a more inclusive and resilient network, ensuring that as the ecosystem grows, it remains robust and adaptable.
Telecom today, the rest of the world tomorrow—Zeebu’s vision is to revolutionize global commerce by introducing decentralized solutions that cater to the needs of various industries beyond telecom. With the Zeebu Protocol, the future of global settlements is one where barriers are broken, liquidity is optimized, and businesses of all kinds can operate with greater efficiency, security, and scalability. Zeebu is paving the way for a truly decentralized and integrated global economy, with the Zeebu Protocol at the forefront of this transformative journey.
To know more about Zeebu, visit our website and head over to our socials to stay on top of the latest developments in the DeFi world. Moreover, Zeebu’s next big thing is almost here—the Zeebu protocol, the largest DeFi liquidity protocol. Sign up for the waitlist now and be a part of the DeFi revolution!