BlockChain in Payment Ecosystem

BlockChain in Payment Ecosystem

Payment industry has been one heck of a huge system which has undergone a drastic change over the time. Each and everyone of us is linked in some or the other way with this system thus becoming a part of the ecosystem.


In today’s world of click technology, everything’s just a click away the world has established a virtual connection where anyone from any part of the globe can access whatever one needs – be it information or in fact can take the tour of a place through Google maps. Eureka!! it’s fascinating such is the power of development in technology today. Buying n selling has become easy and thus it has led to an increase in demand n supply to/from every possible area. To cope up with all the technological advancement, the payment Industry has gone through tremendous change. Well it had to!! In order to facilitate the global trading.


But has it ever occurred to us that swiping a card (debit or credit) and bam!! You have your valuables, this involves complex process behind it . Let’s go a decade behind, the world was preparing for the internet – it got all the paparazzi , everyone was awestruck over the click magic to access anything sitting over in your comfort zone. But for the payment industry to merge this over internet was a tough job but not impossible and here we are , today we have the payment convenience over the internet. Almost everyone is familiar with the way how payment over internet works or how you can simply link your various accounts and through NFC make a payment just by a tap .We have also seen various payment gateways ensuring safety/security of our accounts. But wait a moment !!Let’s just zone out and think is this really the best way to implement it??? Let me give you an insight to the payment flow, which if implemented simply can go on with ease.


The most basic payment system, where you go to a store and purchase, following flow gets executed:


1. Cardholder – Purchases and offers to make payment through card.
2. Merchant/salesperson-initiates the transaction by swiping the card which sends a request for authorization from the merchant bank.
3. Merchant bank – submits the request to the credit card network which in turn charges some fee to provide this service.
4. Credit card network – sends the request to the card issuer.
5. Card issuer – can approve or decline the request.
6. Credit card network- forwards the response to the merchant bank.
7. Merchant bank – acknowledges the merchant.
8. Merchant – receives the authorization and completes the transaction.
9. Merchant – deposits the transaction receipt to the merchant bank.
10. Merchant bank – credits the merchant’s account and submits the transaction to the credit card network for settlement.
11. Finally, Credit card network – facilitates the settlement by paying the merchant bank and debiting the card issuer account.
12. Then, Card issuer posts the transaction to the cardholder account and sends the monthly settlement to the cardholder.
13. At the end, Cardholder receives the statement.


Whao! these many gateways for just one successful transaction.  This could only be achieved with efforts put in by numerous folks and machines working 24*7. Thishas been built just to make it convenient for buyers as well as the merchants to make a trade without any hassle. If you see, the payment done in cash would have saved time skipping the steps mentioned above. Encapsulating, a trade of any kind involves deduction of certain amount at your end and addition of that value at network’s end. So do we really need such a complicated huge system to achieve this. I know you are thinking that digitization is necessary
to handle volume and security and I agree to it but question is do we need system so complicated. What if we can build a system much simple than the one’s used in market today and still get all the advantages!! A system which will eliminate various steps and still prove to be a secure gateway.


Yes we can…Let me introduce you all to – BlockChain-it will blaze a new trail!! It has the capability to reduce payment complexity drastically. The reduction in complexity level further reduces the number of player in payment industry – the middlemen. This in turn reduces the cost of each transaction thus minimizing the cost of purchase. And isn’t it would be great if I say that by just introducing blockchain cost of the goods would get reduced by certain percent. Just think about it! It’s going to revolutionize our world more than the internet and rejuvenate the dilapidated system of payment!! Stay tuned in folks ..we’ll tell you everything about this as it’s unbelievably powerful!!!

  • Posted at 5:18 pm, April 14, 2017

    Hi, i think that i saw you visited my weblog thus i came to “return the favor”.I am trying to find things to enhance my web site!I suppose its ok to use a few of your ideas!!

  • Posted at 2:10 pm, April 16, 2017

    I just want to say I am very new to blogging and site-building and really savored this blog. Probably I’m going to bookmark your blog post . You definitely come with amazing well written articles. Thanks a bunch for sharing with us your website.

Post a Comment