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Beyond the Swipe: Blockchain Technology and the Future of Payments

  • Writer: Mitt Chen
    Mitt Chen
  • May 20
  • 3 min read

The way we exchange value is on the cusp of a profound transformation—and at the heart of this evolution lies blockchain technology. More than just the foundation for cryptocurrencies, blockchain offers a revolutionary framework for payments, aiming to tackle the inefficiencies, costs, and limitations of traditional financial systems. In today’s digitized world, understanding blockchain’s role in reshaping how we send and receive money is increasingly critical for businesses, consumers, and financial institutions.

Customer using contactless payment with a smartphone and card at a café counter, ready to enjoy a cup of coffee.
Customer using contactless payment with a smartphone and card at a café counter, ready to enjoy a cup of coffee.

🧱 What Is Blockchain?

At its core, blockchain is a decentralized, distributed ledger that records transactions across many computers. This shared, immutable record is cryptographically secured, making it highly resistant to tampering and fraud.

Key features include:

  • Decentralization: No single entity governs the network.

  • Transparency: All transactions are visible on a public ledger.

  • Immutability: Records, once added, can’t be altered.

  • Security: Advanced cryptography and consensus mechanisms validate activity.


"From my experience in cross-border real estate and private equity transactions, the biggest pain point is always settlement time and fees. Blockchain has the potential to solve both." — Mitt Chen


🏦 What’s Wrong With the Current Payment System?

Traditional payment rails are slow and expensive—particularly for cross-border transactions. Here’s what’s broken:

  • High Fees: Banks, SWIFT, and payment processors each take a cut.

  • Delays: Transfers, especially international, can take days.

  • Opaque Systems: It's difficult to track transactions in real-time.

  • Security Risks: Centralized databases are vulnerable to hacks.

  • Access Issues: Billions remain unbanked due to systemic limitations.


Case study: A 2023 World Bank report noted that global remittance fees average over 6%, disproportionately affecting low-income families.


💡 Blockchain’s Payment Advantages

Here’s what blockchain-based payment platforms bring to the table:

  • Lower Fees: Peer-to-peer architecture slashes intermediary costs.

  • Faster Settlements: Transactions complete in seconds or minutes, not days.

  • Transparency: Public ledgers offer full audit trails.

  • Security: Decentralization + encryption = reduced fraud risk.

  • Inclusion: Mobile-first crypto wallets can reach unbanked users.


"Imagine a young artist in Nairobi selling a digital painting to a collector in Berlin and receiving payment instantly via a smart contract. That’s the future blockchain enables." — Mitt Chen


Real-world example: Lightning Network for Bitcoin enables instant micropayments at near-zero cost.


🔑 Key Blockchain Payment Applications

  • Cryptocurrencies: Bitcoin, Ethereum, and others allow for decentralized, borderless payments.

  • Stablecoins: Like USDC and USDT, pegged to fiat currencies, offer low volatility and speed.

  • Cross-Border Transfers: Projects like Ripple and Stellar aim to disrupt SWIFT.

  • Supply Chain Finance: Blockchain streamlines vendor payments and reduces fraud.

  • Digital Identity for KYC: Helps streamline onboarding and compliance.

  • CBDCs (Central Bank Digital Currencies): Countries like China (e-CNY) and the EU (digital euro) are piloting or launching digital currencies.


Explore more:


⚠️ Challenges to Adoption

Despite its potential, blockchain still faces obstacles:

  • Scalability: Many blockchains can't yet support Visa-level throughput.

  • Regulation: Legal clarity varies widely across jurisdictions.

  • Interoperability: Different chains don’t easily communicate.

  • UX/UI: Wallets and dApps can still feel complex for non-technical users.

  • Security: Exchanges and wallets remain attractive targets for cybercrime.


💸 The Role of CBDCs

CBDCs are government-issued digital currencies, often built on blockchain or similar tech. They promise:

  • Reduced counterparty risk

  • Programmable money features

  • Instant settlement


"CBDCs could be the bridge between the crypto-native world and mainstream adoption. If central banks get it right, the payments game changes forever." — Mitt Chen


🏛️ How Traditional Finance Is Reacting

Big banks aren’t ignoring this trend:

  • JPMorgan’s Onyx platform enables blockchain-based institutional payments

  • Visa and Mastercard are investing heavily in blockchain rails

  • PayPal now supports crypto payments and transfers


For deeper insights: [JPMorgan Onyx](https://onyx by jpmorgan.com/), Visa Crypto Initiatives


🔮 The Future: A Hybrid Ecosystem

We’re heading toward a multi-rail world:

  • Traditional banks using blockchain backends

  • CBDCs coexisting with stablecoins

  • Crypto payments integrated into daily life


"Blockchain won’t replace the entire system overnight. But its ability to increase efficiency, access, and trust in payments makes it one of the most important financial technologies of our time." — Mitt Chen


📌 Final Takeaway

Blockchain is poised to redefine payments. It’s fast, inclusive, secure, and transparent. But adoption will require overcoming technical, regulatory, and behavioral hurdles.


Whether you're an investor, creator, or entrepreneur—now’s the time to pay attention.


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