Retailers often face issues associated with traditional payment systems, such as high fees and slow transaction times. Integrating a blockchain-based payment system will help retailers avoid intermediaries, reduce transaction costs and offer customers a more efficient and secure payment method.
Visa’s plan to develop a blockchain-based system for instant payments exemplifies the awareness of the need to incorporate innovative payment methods, and blockchain fits the bill. This system will allow consumers to make payments instantly and avoid intermediaries, regardless of time zone or location.
Additionally, digital currencies on blockchain-based payment systems can help facilitate cross-border transactions by cutting down on foreign exchange fees. However, in terms of foreign exchange, retailers may need to use the DXY, which measures the value of the US dollar. The information in the DXY allows for comparing the US dollars against several other foreign currencies.
Hence, retailers can make informed decisions regarding cross-border transactions by having up-to-date information on currency fluctuation.
Retailers often have a complex supply chain that involves multiple parties like manufacturers, suppliers, and distributors. Such complexity makes tracking goods difficult, leading to delays, loss of products, and customer dissatisfaction.
However, blockchain technology provides retailers a transparent and secure means to monitor their supply chain. Via a distributed ledger, retailers can create a fixed and rigid record of transactions throughout the supply chain.
For example, suppose a product is damaged during transport. In that case, retailers can use blockchain technology to track the location and movement of the product, identify where the damage occurred, and hold the responsible party accountable.
This level of transparency and accountability helps retailers minimise losses and reduce fraud risk and theft.
Alongside payment systems and supply chain management, blockchain technology can also be used to enhance customer loyalty programs. Retailers can offer customers a secure and transparent way to redeem rewards with blockchain-based tokens helping them build stronger relationships with their customers and increase future leads.