Recently, the electronic payment service PayPal announced an increase in its commissions. However, the increase in PayPal’s fees makes cryptocurrencies payments a much more beneficial option for users looking for alternative payments to traditional banking or online payment processors.
The new PayPal policy came into force at the end of the last week and implements a series new term of use, as well as the increase in the commission rate for international transactions. The new fees for PayPal services establish a base amount, depending on the country in which the sender is located, which varies between $2.99 and $4.99, to which is added a fee depending on the region where the transaction’s receiver resides.
Also, the payment service implemented changes in the conditions of use. Thus, from now on, all accounts must be fully verified, otherwise, users will only have access to their balance overview and to withdraw the money to the linked bank account.
A condition that, although it seeks to avoid the use of PayPal for money laundering and financing illicit activities, limits the privacy of the users of PayPal.
PayPal’s stricter regulations and higher fees may turn out to be beneficial for cryptocurrencies payments
On the other hand, the limitations implemented by PayPal can stimulate the adoption of cryptocurrencies as a method of payment for international transactions.
Especially considering the low commissions currently handled by the most used cryptocurrencies such as bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP).
It is important to bear in mind that the transactions fees in the cryptocurrencies market do not depend on the geographical location where a transaction is generated or received but on the immediacy with which the confirmation of the transfer is required. A feature that leaves open the possibility of sending a million dollar transaction in Bitcoin (BTC), for example, for only 0.08 cents, of course, if you are willing to wait between 6 and 8 hours for its verification, according to the current speed of the blockchain.
It is necessary to emphasize that PayPal is a much more popular payment tool than the cryptocurrencies payments, therefore it is more common to get businesses and people willing to accept PayPal than they may have been willing to accept cryptocurrencies.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.