The expansion of cryptocurrencies is a boon and a curse depending on the positioning. While these digital assets are sources of many gains for some, they are also a cause of losses for others. To overcome this and follow the evolution, more and more companies are integrating the blockchain and the Web3. Among these, PayPal.
PayPal and cryptocurrencies: a story that dates back!
As the world gets a little more digital every day, investors feel compelled to follow the trend to maintain their gains. However, it is not only about individuals since more and more companies are joining. In 2020, the payment giant took its first steps into crypto. To do this, it has allowed its users to hold, sell and buy cryptocurrencies.
The experiment seems to have been a success since in 2021, PayPal launches its famous "Checkout with Crypto". The latter makes it possible to make payments in native cryptos in millions of online businesses. Thus, the company is experimenting and frequenting the blockchain. However, evolution is a constant thing. As a result, it must find solutions every day to attract the maximum number of customers and keep them.
In the same year, PayPal bought Curv, a company specializing in crypto security. While people suspect the possible creation of a native stablecoin, this buyout increases the reach of rumors. The giant, meanwhile, continues to intensify its efforts to integrate and adopt the blockchain. Regardless of the rumors about the PayPal Coin, he continues on his way and returns in 2022 with great news.
On June 7, the company announced that U.S. users can now transfer cryptos from their accounts to external exchanges and wallets. The extension of its services allows users of the platform to make transfers from their crypto wallet PayPal.
However, network charges vary depending on the operation. For internal transfers from PayPal to PayPal, the fees are zero. That is, no fees will be deducted. However, for external transfers, the network fees will be borne by the customers. All the steps taken so far are only a consequence of technological developments.
Technological evolution and the future of companies
Since the advent of Web3, blockchain and cryptocurrencies, several companies have been forced to review their strategies. Indeed, development goes through many details. Following the trend can be an advantage if they want to evolve and last over time. As in many areas, competition is raging in the online payment industry.
With 426 million active accounts, one would expect PayPal to have no competitors. But this 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 giant of online payments is far from being the most loved. With competitors who continually want to take its place, evolution is no longer a choice. Becoming the best can sometimes be easy, but staying the best is another story.
As more and more companies embark on cryptography, joining the movement becomes paramount. Earlier this year, one of its direct competitors integrated a similar feature on 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 evolution is pushing many companies to grow. In this development, many strategies must be taken into account to stay at the top. For PayPal, intensified adoption of blockchain and cryptocurrencies is a giant step needed to maintain its position. However, the competition is tough! Despite its notoriety, the company is not immune to danger.