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PayPal’s Increasing Fees Push Users to Cryptocurrency

PayPal’s Increasing Fees Push Users to Cryptocurrency

PayPal was an innovator in payment services but as they introduce a steeper fee structure more people may find themselves using Bitcoin and cryptocurrencies in general as an easier alternative.

PayPal is a name that is recognized as a merchant payment system that has been allowing folks to transfer money digitally at a lower rate than banks for twenty years. As they implement new base fees, using crypto’s becomes the obvious choice.

The company has announced a new fee structure: It includes $4.99 for sending any amount out of the U.S. An additional 2.9% if the transaction is partially made with a credit card, and another 2.5% margin to the wholesale foreign exchange rate PayPal receives from banks and the users may end up wondering where their money is actually going.

Fees at that rate will not be tolerated by many people and with the options that using cryptocurrency provides users may soon start ditching their PayPal accounts for virtual wallets as a way to save money as well as speed up the transfer times.

 Sending money with PayPal internationally usually takes three or four business days. Add bank processing time and it can take five or six business days. It does not actually take that much time to make the transfer however both PayPal and the banks that handle the transactions make interest on funds as they process it. Because of the decentralized nature of the system and that literally nobody profits from slowing the transactions down, Bitcoin and others can be transferred around the world in minutes or even seconds sometimes.

One of the many advantages of using cryptocurrency is the freedom and privacy options available with blockchain tech. This is the technology that allows the over two billion people who don’t have bank accounts to complete transactions even without internet access (via SMS).

To become a verified user on PayPal a bank account and credit card deets are necessary. This leaves both the senders and receivers of money open to scrutiny from banks and governmental institutions. While using Bitcoin may not be totally anonymous it is as close as possible for now. It allows users to transfer as much of their own money anywhere to literally anyone.

For many people the benefits of using the egalitarian tech of cryptocurrency to transfer funds becomes obvious when the basic facts are on hand.

Olé Crypto,
CBNN

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