According to the findings of Gartner researchers, centralized payment companies need to adapt in order not to be left behind by the growing demand for payments in stablecoins.
a blog post, analysts at Gartner research company write that while the support of cryptocurrencies by centralized payment systems, such as Visa, Mastercard and PayPal, helps them prepare for the transition to a future payment infrastructure, the income of these companies is based on the collection of transaction fees for clearing and settlement.
According to an article written by Gartner vice president Avivah Litan, a commission strategy that contradicts the P2P model of the blockchain may be exactly the factor that will lead these firms to lag behind the stablecoin payment networks.
Litan classified such firms as “centralized decentralized finance” (CeDeFi). In this system, large companies that own large amounts of BTC are innovating in the field of DeFi and implementing DeFi applications.
However, Litan points out that customers of such services are wondering whether they will be required to pay centralized service fees for moving cryptocurrencies on the blockchain, as this contradicts the original idea of the technology.
“The companies we communicate with are rightly skeptical about these services,” Litan wrote. “At the end of the day, the revolution of blockchain payments is that they perform P2P transactions and eliminate middlemen and the associated banking fees.”
However, the author of the article added that Gartner has yet to face a number of proposals from the cryptocurrency industry for viable payments in stablecoins. Now the problem is the lack of easily accessible applications and high fees-higher than offered by payment card operators or payment systems, such as Square and PayPal.
Litan said that payment card operators have the potential to provide a number of as-yet-defunct offerings. For example, transparent payments in stablecoins in real time on the blockchain, and the protection of money that provides stablecoins held in accounts with partner banks.
“Payment card operators will be able to earn revenue from value-added services, as well as from interest on reserves that provide stablecoins,” Litan said.
According to the analyst, by 2022, the CeDeFi system may be ready for implementation in enterprises, if the relevant regulatory requirements are adopted. However, if traditional payment companies do not have time to adapt to support such services, the rapidly developing cryptocurrency exchanges and other industry companies will bypass them.
“Will centralized financial companies move forward in the spirit of blockchain-based P2P payments, at the risk of cannibalizing their existing revenue streams based on a centralized settlement and clearing organization?” writes Litan. “The answer will depend on whether they have a valid choice.”
Recently, it became known that Visa is developing a
set of APIs for banks and financial organizations. They will be able to provide their clients with services for working with crypto assets. In addition, the CEO of Visa said
about plans for cryptocurrency payments during a teleconference dedicated to the company’s financial activities for the first quarter of 2021.