The COVID-19 pandemic and global economic recession it triggered makes it extremely hard for businesses to survive. Using technology is the way to go for business owners that want to get through these difficult times without losing customers. Already, the use of fintech solutions has risen by over 70%. This time is a trial for many but it might be the exact thing that crypto needed to gain popularity. Ripple, in particular, might be able to use this opportunity to become indispensable in the post-coronavirus world.
Importance of Businesses Payment Automation Post-COVID-19 Pandemic
The impact of the COVID-19 pandemic on business is tremendous and close to devastating. With lockdowns in place as well as multiple other measures that aim to stop the virus spreading many businesses are unable to function. And those that still can work in these conditions must find ways around their many limitations.
One of the most pressing matters for them is payment automation. As using cash is not safe and using bank wire transfers is too expensive for the majority of customers and entrepreneurs, a new solution is required. That’s why fintech apps have skyrocketed in their popularity.
However, a way to send money from one’s bank account without actual visits to the bank is not enough. Going completely digital is a far better alternative for this new technological era we are entering. Today, remote and automated work is becoming the norm instead of something that only most progressive enterprises do. Digital currency will be right at home in this world, and crypto has been gaining power even before this. It’s not yet at the level where cryptocurrency might replace fiat money. But Ripple, with its unique position in the crypto world, might be closer to this than others.
Benefits of Using Ripple for Payment Automation
First of all, Ripple was created for the express purpose of facilitating payment automation. And while Ripple XRP is a cryptocurrency, Ripple is also more than that. It’s a system for payment settlement and remittances that’s closer to SWIFT in its operation protocols. Simply put, Ripple is a technology first and foremost. And this technology is a digital payment network that makes transactions fast, cheap, and secure.
Main benefits of using Ripple for businesses include:
- Widespread use.
Multiple retailers and other businesses already accept Ripple’s services as a payment method. Considering the switch to digital services, this number will likely keep growing.
- Fast transactions.
With Ripple, you can complete an international transaction within minutes. As businesses today need to fight over retaining customers, this can give them an edge over competitors. According to Ripple, a XRP transaction can be completed within 3 seconds.
- Open-source technology.
Ripple is based on open-source technology. This means that any business has an opportunity to adapt it to its specialized needs. Easy access to different markets and platforms makes it easy to use Ripple anywhere. Therefore, the business can scale and spread globally.
The main problem of cryptocurrencies is their extreme volatility. It’s one of the biggest obstacles that prevent crypto being equal to fiat currencies. XRP is also volatile to come extent, but it’s not as unstable as BTC. In fact, it fares extremely well in terms of coin value stability despite the current crisis. Therefore, the risk of using it to accept and make payments is much lower for businesses.
Ripple Today: Is This the Future of Cryptocurrency?
XRP has increased in value in recent months, as had bitcoin and some other cryptocurrencies. The reason is simple, the interest in them is growing now that digital payments have become a necessity. However, with Ripple the situation is a bit different.
Its increase in value mainly comes from the increase in use as a payment method. Bitcoin, on the other hand, is mostly used for speculation on its growing value and hedging. XRP doesn’t present an attractive target for either of those. However, as a tool for making international payments, this cryptocurrency seems like one of the best choices available.
This is what makes the main difference between XRP and BTC. This is also one of the main reasons why it’s Ripple that has a better chance of taking cryptocurrency to the next level.
One of the biggest problems that prevent cryptocurrencies from becoming equal in status to fiat money is that they aren’t really used as currencies. They are too volatile to become common payment tools.
In the meantime, the fact that they aren’t used as currency for regular payments is why they are so volatile.
Ripple seems to be the crypto that is capable of breaking this pattern. As its use increases, its status is changing. If this dynamic continues, soon we might see XRP accepted by the majority of retailers. At this point, it will have to be acknowledged and legalized by governments. Quite possibly, this will be the push needed to see that cryptocurrencies can be used in all types of transactions. This means including the payments of utilities and taxes. At this point, crypto will become equal to fiat currencies.