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Web3 payments picking up in the UAE

Blockchain technology ensures trust and immutability, crucial for businesses seeking long-term success

Published: Sun 12 Nov 2023, 8:20 PM

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Ira Lakhman, COO of Fuse Network

Ira Lakhman, COO of Fuse Network

Businesses in the UAE and across the globe are increasingly embracing blockchain payments. A recent report by Deloitte revealed that nearly 75% of businesses in the United States will be accepting Web3 payments within the next two years.

The UAE is known for its forward-looking approach to Blockchain technology adoption, as seen in its widely acclaimed 2021 Emirates Blockchain Strategy which aimed to ‘capitalise on the blockchain technology to transform 50 per cent of government transactions into the blockchain platform by 2021’. “The Web 3 payments trend is particularly significant because blockchain technology provides a decentralised, transparent, and highly secure financial infrastructure that aligns perfectly with the UAE’s vision of innovation and economic diversification,” Ira Lakhman, COO of Fuse Network, told Khaleej Times in an interview.

Why are businesses moving to web3 payments?

To dissect the rationale behind this development, we will have to go into the diverse and profound benefits that it offers, including its enhancement of cross-border transactions through swift and financially efficient payment processes, security, transparency, and the optimization of customer loyalty programmes, amongst others.

Moreover, one of the key drivers for businesses in the UAE to move towards Web3 payments is the long-term sustainability and growth potential it facilitates, especially because Blockchain technology ensures trust and immutability, which are crucial for businesses aiming for long-term success. With Web3 payments, businesses can also reduce their reliance on traditional financial intermediaries, translating into lower transaction costs and heightened operational efficiency.

In this context, Fuse Network offers an innovative platform for businesses in the UAE to seamlessly adopt Web3 payment solutions. Fuse Network is also an Ethereum Virtual Machine (EVM)-compatible, decentralised public blockchain platform tailored to empower businesses to create their native and community-focused economies effortlessly, using a strategic mobile-first approach.

The adoption of Web3 payments which can be optimized through Fuse Network’s innovative solutions portends to propel UAE businesses into a future of financial innovation and global competitiveness, making this shift more than just a trend but a strategic move towards enduring success.

What does web3 have to offer to businesses?

The adoption of Web3 technology, which encompasses decentralized finance (DeFi), and blockchain, offers a myriad of advantages for businesses seeking innovative payment solutions. Web3 technology facilitates transparency and trust by utilizing decentralized networks, significantly reducing the need for intermediaries in transactions. This allows for faster and more secure payment processing, minimizing the risk of fraud and enhancing the overall efficiency of financial operations. In turn, this also facilitates an increase in customer adoption rates, affordability of transaction fees, and quicker payment processing especially in blockchain-savvy regions like the UAE where there is an existing demand for Web 3 payment solutions.

Interestingly, Web3 technology also has immense potential to bolster customer satisfaction and engagement through its ability to reimagine consumer loyalty programs. With Web 3, digital businesses can offer their users a platform to emotionally connect with their brands in an innovative, personalized and distinct way. For instance, Fuse Network is at the forefront of redefining loyalty schemes and financial services through Web3 technology by allowing customers to own branded digital assets, forging deeper emotional connections and transforming traditional points-based systems.

One notable example is Fuse’s partnership with Bitazza, resulting in the Freedom Wallet, a non-custodial mobile wallet running on the Fuse Network. This collaboration exemplifies Fuse’s ability to bridge the gap between complex blockchain concepts and real-life solutions accessible to everyday users. With a commitment to making loyalty more meaningful and financial services more accessible, Fuse Network is leading the way in shaping the future of loyalty and finance, one practical innovation at a time.

Simultaneously, Web3 payments offer businesses innovative solutions to streamline their operational efficiency. In line with this, Fuse Network empowers businesses with tools for decentralized lending, borrowing, and enhanced financial operations.

What pain points does web3 solve and what are the specific use cases?

Web3 technology resolves numerous payment challenges that both businesses and individuals face in the digital age.

One major challenge it particularly addresses is that of intermediary dependence, a critical concern in traditional financial systems. Fuse Network, as a decentralized platform, contributes to eliminating the need for intermediaries in transactions, promoting peer-to-peer interactions and reducing reliance on centralized entities. This decentralization is a pivotal solution to enhance efficiency and cut costs associated with intermediary involvement in financial processes. As a result, a gleaming demonstration of the immense impact of blockchain technology’s decentralization is the fact that it optimises and enhances cross-border transactions, which remains one of the most important use cases of Web 3 payments.

Another pain point is that Web3 payments offer an intriguing opportunity for the simplification of secure micro-payments- which generally refer to payments below 25 cents. The issue with traditional payments in handling such micropayments lies in the fees linked to traditional payment systems. Microtransactions play a pivotal role for content creators, freelancers, and digital service providers. Yet, conventional payment systems often fall short, marred by inefficiency and excessive costs when dealing with these small financial exchanges. Here’s where Web 3.0 payments come in, delivering an economically viable solution that streamlines the process of transferring small sums of money with speed and affordability. This paves the way for an evolved form of creator economy, akin to what’s unfolding on platforms like X (Twitter), where users are remunerated for their influence and exposure. It also creates opportunities for enhanced cashback programs, consumer clubs, and other innovative payment solutions and services.

Are web3 payments really complex and just for big brands?

The current blockchain industry is undeniably intricate, plagued by poor user experience and a strong bias towards desktop interfaces, even though the demand is for mobile-friendly solutions. Also, despite the existence of numerous players in the web3 technology sector, it is unfortunately centralized, with only a few major brands controlling many endpoints and technical products. This complexity can lead to small and medium businesses incurring hefty and unsustainable fees for their transactions. Consequently, big brands like Starbucks, with their resources and technical expertise, tend to be the early adopters of this technology, while small and medium-sized businesses, which could greatly benefit from Web3 payments, are often left behind.

Evidently, there is a gap that needs to be filled and our value proposition at Fuse is to address this and provide a user-friendly, mobile-first platform that SMEs and SMBs can easily leverage to reap the benefits of Web3 payment solutions. As such, Fuse provides an end-to-end payment solution that small and medium-scale businesses can easily integrate. Additionally, Fuse offers businesses a comprehensive package, including a mobile wallet, customizable user experience, a speedy EVM network, gasless transactions (no user fees), payment notifications, invoicing, and more.

Web3 payments, facilitated by Fuse Network, are designed to be accessible and practical for businesses of all sizes. The goal is to simplify the adoption of decentralized finance, ensuring that both big brands and smaller enterprises can leverage the advantages of Web3 payments in their operations.



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