The adaptation of cryptocurrencies as a mode of payment is on a steady rise, in part due to enhanced transaction speed and reduce costs. A Reddit user Julices_Grant urges the community to switch to cryptocurrency payments as PayPal’s 8.12% fees over each sell he makes every time a buyer makes a purchase is a high transaction cost to pay.
At the time of writing, the Reddit post had gathered over 2707 upvotes and almost 500 comments at the. The writer further explained in another comment, that though he does not know how to adapt the check-out sum in case the customer is paying via cryptocurrency he is still ready to accept them.
PayPal transactions in some countries employ a 2.9 percent fees. If there is a conversion rate to be added the fee escalated to around 5 percent of the whole transaction. In some cases, merchants end up paying more than 8 percent and up to 10 percent while receiving payments via PayPal, for their products sold.
In general, 8.21% does not pinch that much, however, if the merchant sells several products, it aggregates to a considerable sum of money. With all the extra costs that any merchant has to cover, the PayPal fee certainly pinches their pockets.
Other Troubles with PayPal
The centralized platform isn’t the most merchant friendly platform. Many times PayPal could freeze users’ accounts without a clear reason. Generally, this freezing is extended to about 3 months, while it has been known to stretch out to about 6 months. Obviously, the platform becomes a hassle at such a point. The merchant also accounted for such an incident on his Reddit post:
“But now I wished I never used PayPal, got a lot of money stuck for another 3 months (6 total) and they give me no reason at all. After being a customer of theirs for 6 years one day they decided nope were gonna hold your money, ban you from our service.”
Though the merchant gives a green signal for cryptocurrencies, the payment method is not yet achieved mainstream recognition. While there has been a significant rise in their acceptance and adoption, especially Bitcoin (BTC), Litecoin (LTC) or Bitcoin Cash(BCH).
BTC takes around 10 minutes if the network is not congested and costs just a few cents of a dollar per transaction. Litecoin and Bitcoin Cash present a better option as they are cheaper and faster alternatives, more suitable for merchants. However, Bitcoin developers are working in a scaling solution called Lightning Network(LN), which should in most probability aid the network to scale and process millions of transactions without delay and for very low fees.