Bitcoin May Empower PayPal, Rather Than Posing a Threat

by | Apr 17, 2018 | Bitcoin, Cryptocurrency, Cryptocurrency News, Digital Payments

Paypal | Bitcoin | Digital Payments | Digital Cryptocurrencies | Cryptocurrency news | Bitcoin news

PayPal Holdings, Inc. is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. Thus, it generates considerable free cash flow.

People may consider PayPal under threat, given the new digital currencies like Bitcoin and other cryptocurrencies that are coming in the market. However, they are more like opportunities rather than threats to PayPal.

The Bitcoin has kept everyone interest since its advent. People who are not even investing make sure to keep themselves updated about the Bitcoin scenario. The blockchain technology too, which came out in light at the same time as Bitcoin did has been inspiring people, institutions, and companies worldwide.

The era of digital payments has never seen its peak till it has now. People feel safer, convenient and practical about making digital payments that can be via Dollars, BTC or other cryptocurrency.

In this context, it should first be mentioned that Bitcoin is not here to kill other modes of digital payments like Paypal. In fact, Bitcoin may actually serve as water or any other nourishment medium for plants like PayPal to grow further. Though merchants and businesses are becoming increasingly cautious with the high volatility of BTC and may wait for the cryptocurrency to exhibit more reasonable trading ranges, but several surveys have indicate that at least 60% of merchants are convinced accepting Bitcoin as another option for United States dollars.

60% is a high number of people to show their interest in Bitcoin, specially keeping in mind the volatility issue. It should be accounted that merchants are also caught up in the breakneck rise of cryptocurrency assets, but this is just an early phase of broader acceptance of the technology. This may come with time with more credibility and good will of cryptocurrencies and Blockchain Technology.

Square (SQ) is one of the first to accept cryptocurrencies. PayPal should view cryptocurrency as an extension of their business models. If you may not be knowing, PayPal started to include Bitcoin into its applications in 2015, much before the cryptocurrencies created a huge buzz in the market.

PayPal has mentioned that the volatility of BTC price, for example, may completely wipe out a merchant’s margin on a sale. This may be prominent till the time BTC price actually starts to kick up again. Companies like to ward off currency risks from their operations. The volatility of Bitcoin may endanger merchants and their businesses.

In bottomline, several modes of digital payments are not being a threat to each other but rather empowering each other as digital payment technology altogether is becoming more and more mainstream. Decades ago, consumers were even skeptical of credit cards, nowadays many are growing more and more comfortable with digital assets, even those which have been lost or stolen in the past or have been associated with illegal activity.

Thus, in the longer run it may be expected that Bitcoin and other cryptocurrencies will empower other digital platforms like PayPal.

KryptoMoney.com publishes latest news and updates about Bitcoin, Blockchain Technology ,Cryptocurrencies and upcoming ICO’s.

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