Binance emphasizes importance of crypto payments
According to the latest report "Blockchain Payments: A Fresh Start" released by Binance Research Department, Binance analyzed the potential of blockchain technology in the digital payment industry. The report states that payments using blockchain are up to 50 times less expensive and more flexible than traditional electronic payments.
In 2023, the transaction volume of Binance Pay, the Binance payment platform, increased by 71%, showing that users are gradually increasing their acceptance of crypto payments.
Binance emphasized that the future development of encrypted payments will become the core narrative of blockchain applications!
Although Web3 wallets have attracted much attention in the technology industry, payment is an important way to truly change the digital economy. As Binance points out, much of the value stored in digital payments is monopolized by global debit and credit card usage. Providers such as American Express, JCB, Mastercard, UnionPay, Visa and others have driven the growing trend in card transactions over the past nine years. The compound annual growth rate since 2014 is 15.1%, as shown in the chart below.
Source: Binance Since 2014, the number of global credit card transactions has grown at a compound annual growth rate of 15.1%
Blockchain Payments: Fast and Affordable Solutions
According to Binance’s report, blockchain technology has shown strong innovation potential in digital payments. The current estimated revenue of the global digital trading market will reach US$2.83 trillion in 2024 and grow to US$4.7 trillion in 2029, with a compound annual growth rate of 10.8%. However, while the digital payments market continues to grow, the technology infrastructure behind it is 50 years old, resulting in multiple intermediaries in the transaction process that make payments costly.
At the same time, payments through blockchain technology can effectively reduce intermediaries and significantly reduce costs. For example, the average cost of transferring $200 using traditional methods is around 6.35% ($12.7), while blockchain-based transaction costs are 50 times lower, demonstrating the disruptive potential of blockchain payments. The decentralized nature of encrypted payments also makes payments more convenient, especially in areas "not covered by banks". Blockchain payments provide financial solutions that do not rely on the traditional banking system.
Source: Binance The current global average cost of cross-border remittance is 6.35%
Binance Pay’s growth is strong
Binance’s payments platform, Binance Pay, has shown strong growth amid a booming crypto payments market. In the first half of 2024, the number of active users of the platform increased by 43% compared with the second half of 2023, while transaction volume also increased by 9%. Since 2022, Binance Pay’s monthly transaction volume has grown nearly five times, with the platform having 13.5 million global users and a total transaction volume of 196 million.
Source: Binance Over the past 3 years, Binance Pay’s users and activity have grown 5x
The success of Binance Pay not only shows the potential of crypto payments, but also highlights the innovation of blockchain technology in cross-border payments. As blockchain technology can provide faster and lower-cost cross-border payment solutions, markets such as South Asia, Eastern Europe, the Middle East and North Africa have become important regions for the platform's growth.
Blockchain technology leads a new era of digital economy
Gianluigi Guida, CEO of Binance Italy, said: "Blockchain technology is reshaping the global financial landscape and introducing a more efficient, inclusive and transparent financial system." He emphasized that blockchain is not meant to replace traditional finance, but to complement and complement it. Optimizing existing infrastructure will create unlimited opportunities for users and businesses around the world.
Source: Binance Global Financial Payment (left), Blockchain Encrypted Payment (right)
As more and more traditional financial institutions adopt blockchain technology, this trend heralds the arrival of a new era of digital economy. The advancement of blockchain technology not only changes payment methods, but also promotes innovation in the global financial system, allowing users and merchants to enjoy a more convenient and efficient digital economic system.
