5G connectivity is significantly improving the speed and quality of global connections. As consumers become dependent on high-speed transactions, antiquated payment systems can have a negative impact on the user experience.
This can affect all types of online industries, from retail and entertainment to trading and betting. For example, the global online gambling industry is extremely competitive, and operators must invest in the latest software and games to ensure they appeal to customers. Betting expert Daniel Symyth compares the best online casinos, including instant withdrawal sites, and explains that those that offer a variety of payment methods and near-instant payouts of winnings are more likely to appeal to customers. Likewise, in trading, speedy payments are key as the market is so volatile and delays in payment processing can make the difference between a successful trade and a missed opportunity.
The potential of the fast payment systems being connected in different countries would improve transaction speed and transaction transparency.
While this proposal could be beneficial for many industries around the world, a lot of work would have to go into making it a possibility. Well-structured and regulated governance frameworks would have to be established across different jurisdictions.
Difficulties could arise with differences in the financial regulatory frameworks of the countries involved.
At present, the best option for consumers looking to carry out speedy international transactions is using cryptocurrencies.
The decentralized currencies remove the need for exchange rates and can be processed quickly with lower fees than traditional payment methods.
This can be seen in the U.S. in states with prohibitive betting regulations as citizens explore offshore betting options.
Licensed betting sites in other jurisdictions offer bettors a way to explore different betting markets. They enjoy popularity around the world from people living in places where betting is banned or those that want casinos not on Gamstop.
The ability to make quick, secure payments and withdraw money without delay is vital to the betting industry and many others where time is a crucial element. Stock market investments are another example of time-sensitive payments, where delays can end up jeopardizing deals.
The international gaming industry is another that relies on fast payments, especially for in-game purchases. Delays in payments can interrupt gameplay, and customers who experience long delays are far less likely to make further purchases.
Issues that will have to be overcome include legal rules in different countries surrounding international payments. Anti-money laundering rules and counter-terrorism measures are in place across many countries, but differences in legislation could cause setbacks in attempts to set a global standard.
Some jurisdictions have already adopted fast payment systems on a large scale, but it is not widespread. Despite not all areas adopting fast payment systems, they are still showing steady growth while cash circulation is on the decline.
Fast payment systems rely on user-centric designs and state-of-the-art technology that is capable of processing large volumes of sensitive data.
The infrastructure and rules set out in global fast payment systems will have to be agreed upon by all parties, with governance that oversees its activity.
Blockchain can be used as a possible example of how collaborative approaches could work. Unified ledgers will provide transparency and ensure cross-border transactions can be made using strong public infrastructures.
