Cryptocurrency expansion is a boon and a curse depending on positioning. While these digital assets are a source of many gains for some, they are also a cause of loss for others. To overcome this and keep up with developments, more and more companies are integrating blockchain and Web3. Among these, PayPal.
PayPal and cryptocurrencies: a long history!
As the world becomes a little more digital every day, investors feel compelled to follow the trend to maintain their gains. However, it is not just about individuals since more and more companies are joining. In 2020, the payment giant took its first steps into crypto. It did this by allowing its users to hold, sell, and buy cryptocurrencies.
The experiment seems to have been a success since in 2021, PayPal is launching its famous “Checkout with Crypto”. The latter allows payments to be made in native cryptos in millions of online businesses. Thus, the company experiments and frequents the blockchain. However, evolution is a constant thing. As a result, she must find solutions every day to attract as many customers as possible and keep them.
In the same year, PayPal acquired Curv, a company specializing in crypto security. While people suspect the possible creation of a native stablecoin, this takeover increases the scope of the rumors. The giant meanwhile, continues to intensify its efforts to integrate and adopt the blockchain. Regardless of the rumors about the PayPal Coin, it continues on its way and returns in 2022 with great news.
On June 7, the company announced that US users can now transfer crypto from their accounts to external exchanges and wallets. The extension of its services allows users of the platform to make transfers from their PayPal crypto wallet.
However, network fees vary depending on the operation. For internal transfers from PayPal to PayPal, the fee is zero. That is, no fees will be deducted. However for external transfers, network costs will be borne by customers. All the steps taken so far are only a consequence of technological development.
Technological evolution and the future of companies
Since the advent of Web3, blockchain and cryptocurrencies, many companies have been forced to review their strategies. Indeed, the development goes through many details. Following the trend can be an advantage if they wish to evolve and persist over time. As in many fields, competition is fierce in the online payment sector.
With 426 million active accounts, one would expect PayPal to have no competition. But it is far from being the case. While the company allows trading in more than 202 markets, its notoriety becomes its main problem.
Indeed, although it is the best known in its sector, the online payment giant is far from being the most beloved. With competitors continually vying to take its place, evolution is no longer a choice. Becoming the best can sometimes be easy, but staying that way is another story.
As more and more companies are getting into crypto, joining the bandwagon becomes paramount. Earlier this year, one of its direct competitors integrated a similar feature into its platform. Unlike PayPal, Robinhood said there would be no transaction fees. This, even for external transfers. Since April, two million customers have been able to transfer digital assets on the platform.
Technological change is pushing many companies to grow. In this development, many strategies must be taken into account to remain at the top. For PayPal, an intensified adoption of blockchain and cryptocurrencies is a giant leap needed to maintain its position. However, the competition is fierce! Despite its notoriety, the company is not immune to danger.
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The world is changing and adaptation is the best weapon to survive in this undulating universe. As a crypto community manager at the base, I am interested in everything directly or indirectly related to the blockchain and its derivatives. In order to share my experience and make known a field that fascinates me, nothing better than writing informative and relaxed articles at the same time.