It is well documented that cryptocurrency has recently taken the world by storm. Its rise in popularity has sent shockwaves through various industries. The most recent one being online payments. Cryptocurrency has started to play a major role in this sector and is even on the verge of taking over the likes of Paypal. Now, this will not happen overnight, but there are some factors that could lead to a changing of the guard. One of the biggest reasons PayPal is losing steam with its users is its apparent lack of security. In the past, millions of accounts have been stolen and sold on the black market. This problem has been occurring for the last five years, and PayPal has been unable to do much to eradicate the problem.
Another factor to consider is the recent change PayPal made to its policy. For starters, they are removing the variable rate pricing for sending money outside the US. In its place, the recipients of those funds will be differentiated based upon their country of residence. They will also be introducing a flat fee which could increase to $4.99 per transaction.
There will also be an extra “rule” for credit card and debit card users. The flat fee will still apply, along with a fixed fee based on the currency, and a surcharge of 2.9% of the transaction amount. So, in a best-case scenario, if you send $100 to a country where the flat fee is $2.99, the recipient would then receive about $92 or less. Keep in mind that this does not apply to purchases made through the service and only relates to people who are sending money to friends and family.
So, how does this benefit cryptocurrency? Until recently, Paypal had a significant footprint in the money transfer industry. However, these policy changes will allow other forms of remittance to rise like cryptocurrency. Unlike the traditional solutions, Bitcoin and other digital currencies are borderless allowing them to be much cheaper when sending money abroad. Additionally, cryptocurrency does not require much important information and blockchain technology is much more secure than PayPal.
On top of that, Dash, which is the 12th largest cryptocurrency announced a recent partnership with the loyalty rewards website Rewards.com that will allow users to redeem Dash for purchases they make via the service. This partnership would make for a real-world application of cryptocurrency leading to it becoming more mainstream.