Crypto is likely to explode in 2021 thanks to PayPal adoption. Here is everything you need to know.
If you ask me, I will tell you PayPal never completely dumped the idea of integrating with cryptos, especially Bitcoin (BTC). This is quite understandable because the industry has enjoyed and keeps enjoying an influx of immense recognition and acceptance. Now that Paypal and Venmo (both owned by PayPal) have incorporated direct crypto buying and selling into their service, breaking $12k may be the beginning of a new era.
Interesting facts about the adoption:
They revealed to the world on Wednesday (October 21) that it will be adopting cryptocurrencies as a transaction option. Allowing users and merchants to use virtual coins within the system.
In less than 12 hours after the announcement, BTC experienced an upsurge. Prepare yourself for more explosion in 2021 because the stage has already been set.
PayPal boasts of over 350 million account owners. Millions of users can now make payments in virtual currencies to merchants.
What happened with PayPal’s initial attempt at crypto adoption?
PayPal after initially announcing an alliance with Facebook on the launch of its cryptocurrency (Libra) pulled out of the deal because of the project’s controversial nature. Facebook has since then, returned to the drawing board.
Covid happened and PayPal decides to go again
The lockdown period played a significant role in the shift towards a virtual mode of payment. Platforms such as crypto gaming casinos and gambling sites served as the solution to boredom for individuals who looked for ways to keep themselves busy.
As a commercial platform, it is not surprising to see PayPal try to leverage the shift. The stage has already been set and every user can rest assured of full implementation in the early months of 2021. No turning back this time.
The Bright side of Buying and Selling of Cryptos on PayPal
Thanks to the collaboration between PayPal and Paxos, PayPal customers in the US will be provided with options such as buying, holding, or selling cryptos in few months. Other countries will follow once the primordial stage is a success.
- Fee per transaction is great
Unlike CoinBase which charges a staggering 3.99% for debit card transactions, the highest fee PayPal’s crypto service will charge its users is 2.3% (for transactions below $100). Here is a break down of the updated charges from PayPal:
Below $100 – 2.3%
Between $100 and $200 – 2%
Between $200 and $1000 – 1.8%
Above $1000 – 1.5%
- Access to a large database of Network of crypto traders or merchant
PayPal is renowned for its affiliation with millions of other or subsidiary merchant networks. The adoption of cryptos will encourage customers to transact using digital currencies on these networks. This is consolidated with 2-factor authentication (privacy security).
- The One Touch Transaction Feature
This exciting feature will allow users to execute crypto transactions with just a single tap. It is the one function I cannot wait to enable because the other option (adding my account details) is a very stressful one.
- Excellent Payback Protection with PayPal
In the event of discrepancies between buyers and sellers, PayPal’s Payback policy protects the interest of their customer by reimbursing them with the amount involved in the transaction. For now, only PayPal offers this unique feature.
- Secure Encryption and Powerful Anti-Fraud protocols
Last but not in any way the least is the ability of PayPal to encrypt every crypto transaction to ensure 100% data safety. Boasting of an outstanding anti-fraud protocol, all buying and selling transactions involving BTC and altcoins are monitored at all time.
- Rules and regulation apply to everyone
Every user has to be okay with not sending their crypto around for now. In other words, you can buy and release your coin when you are willing to sell. In terms of private keys, no customer has access to one for now. This is because it allows the platform the ability to control how customers own BTC and altcoins.
Not just Bitcoin has reasons to be happy
Altcoins such as Litecoin, Ethereum, Bitcoin cash, just to name a few will be on the rollout in the coming weeks in the US. By 2021, complete adoption of all cryptos will be activated on every PayPal user’s digital wallet.
On this note…
It is just a matter of time for PayPal so you can eliminate the fear of PayPal calling the idea off as it did with Libra. In addition to this new feature, Paypal will not just retain its solid reputation but also strengthen its reach. With the little information you have at your disposal, you do not need any form of recommendation to use PayPal for your crypto transaction come 2021.