PayPal was developed as an alternative to many financial funds transfer services, such as Western Union and even traditional banks, which require a considerable commission for every transfer. The extremely low commissions charged by PayPal for transfers makes it an ideal instrument for users seeking an affordable means of transferring funds from abroad. This includes immigrants and even average users who are sending funds to their friends and family. More importantly, PayPal was integrated into business settings, making it a reliable partner for companies operating in e-commerce and digital services sales.
The development of the digital economy based on the blockchain created a completely new impetus for the development of financial services that relied on the new technology for adding efficiency to the transfer process. The blockchain allowed financial services to significantly speed up transfer times and reduce associated commissions. Most importantly, the blockchain provided transparency and immutability to records – factors essential for many industries that rely on a large number of intermediaries and are susceptible to fraud.
PayPal was among the services that became among the first to embrace the capabilities of the blockchain to improve the quality of service offered to its customers. The service was also quick to react to the new developments in blockchain space, as its founder – Elon Musk, is known as one of the most fervent proponents of digital currencies, regularly posting tweets about various coins, and even going so far as to start accepting Bitcoin as a means of payment for Tesla cars. Combined, these crypto-favorable steps have allowed PayPal to create a positive news background in preparation for its entry into crypto space.
The move happened at the most favorable moment possible for such an innovation – at the height of the coronavirus pandemic. The introduction of Bitcoin and Ethereum acceptance and transfers by PayPal also coincided with the rapid growth and development of the decentralized finance industry, which allowed millions of people locked up indoors to start earning on cryptocurrencies remotely – a significant help during a time of business lockdowns. The inclusion of cryptocurrency support on the part of PayPal paved the way for the service to take up a dominant position on the market as a reliable partner for peer-to-peer transfers.
However, a significant development took place in the beginning of 2022, which undermined the position of PayPal as a reliable partner for funds transfers. Pressured by the United States government, PayPal forbade all manner of transactions for millions of people in sanctioned countries, essentially positioning it as a controllable and biased entity. The move significantly undermined trust in the service and deprived it of millions in revenues. The result of these actions was the outflow of millions of users and the transfer of their operations to other, more reliable, decentralized venues. Decentralized exchanges also provide:
- Direct P2P trading;
- Higher security;
- Lower commissions;
- Price setting on individual terms.
Still, PayPal retains its position as a major funds transfer service, one capable of serving customers with its wide range of supported currencies and digital assets amenities. More importantly, the service is expanding its lineup of offered currencies and is giving users the chance to tap into the many possibilities and opportunities of the decentralized market in full through a convenient and intuitive interface.
Bitcoin may be the most coveted of all cryptocurrencies, but one has to admit that it is also the most unaffordable. With an average price tag hovering in the $30,000 region, few people can afford to buy it freely, much less risk losing a few more dollars on commissions associated with its sale. Luckily, the digital assets market is brimming with alternative coins and tokens that can vie for the title of an even more popular asset. In light of the volatility and investment asset status of Bitcoin, users willing to conduct operations on the decentralized market can take a look at Ethereum as an alternative. And PayPal can help in this regard.
The payment service is giving users the opportunity to purchase Ethereum on par with Bitcoin through a convenient and straightforward purchasing interface. All users have to do to purchase their Ethereum is register on the PayPal service and verify their account. The next step will be to connect a bank card or any other verified payment gateway and start transferring funds to their account to top up the balance. Once the balance has been topped up, users will have to go to the “Buy Cryptocurrency” section and select the asset they wish to acquire.
PayPal offers its own blockchain-based wallets to users willing to partake in cryptocurrency operations. Alternatively, users can connect one of their own custodial or non-custodial wallets and have the assets they acquire transferred there. Even more importantly, users can connect an existing cryptocurrency wallet and transfer another set of digital currencies to their PayPal account to make the transaction for the purchase of Ethereum. Such convenience greatly expands the possibilities for PayPal as a peer-to-peer platform and makes it ideal for instant operations.
Once users have topped up their balance, they have to select the cryptocurrency they wish to acquire and indicate the amount for which they wish to buy. With that done, all users will have to do is execute the operation and wait for the new assets to be transferred to their balance. An important factor to consider in this regard is the commission PayPal charges for the operation and the current exchange rate for the assets in question. PayPal has its own exchange rates, which can differ greatly from market averages or from the rates that users may be used to on their local exchanges.
PayPal is a reliable service for funds transfers when it comes to operations outside of sanctioned countries. The expansion of the service to the cryptocurrency space has given many users around the world a safe and secure platform that can be used for making all kinds of cryptocurrency operations for both personal and business purposes.