The future of cryptocurrencies is constantly being watched and debated, due to their inconsistent nature and unsustained volatility. However, the opinion of PayPal’s CFO, John Rainey, is quite different on the matter, especially after telling the mainstream media that the renowned company for online payments could provide additional support for Bitcoin. According to him, the main reason for the troublesome merchant settlements lies within the currency’s unpredictability, which is why the electronic commerce company cannot see a lot of interest regarding its acceptance.
The volatility of major cryptocurrencies such as Litecoin, Ethereum or Dogecoin is currently bad for business, pursuant to Rainey, as merchants who accept payments in digital assets could lose a lot of money even on simple transactions. At present, a ten percent margin on a product could move the very next day to fifteen percent and so on, explains CFO.
PayPal started implementing Bitcoin payments in 2015 via its integrated system Braintree. Nevertheless, the currency’s volatility had numerous ups and downs since then, leaving all merchants in unfavorable situation of constant converting their funds to fiat. By comparing the Braintree with Lightning, Rainey also pointed out a distinct disparity between the fees and processing times, saying that a 2.9% plus a $0.30 expense per transaction remains stable whatsoever, whilst the Lightning’s capacity is just under $170,000.
To finalize, Rainey said that PayPal does consider a full support policy regarding Bitcoin, but only if the asset stabilizes and becomes a more predictible currency. In case that relevant capabilites of crypto continue to pressure both merchants and fiat-based solutions, no long-term support will be established, and fees will continue to vary tensely, which basically takes us back to the startline, doesn’t it?
Source:
“Paypal: We’ll ‘Definitely Support’ Bitcoin If It Becomes ‘Better Currency’”, bitcoinist.com, May 22, 2018.
Robert Melgoza 3 years ago Sr. Newbie
PayPal and Bitcoin are some of my favorite payment methods get rewarded accept payment buy Bitcoin sell trade transfer invest send a gift use PayPal were you go. Iam still trying it out Iam liking it so far
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2Late4Me 6 years ago Hero Member
I am a local and ecommerce merchant that depends on PayPal's checkout payment system and credit/debit cards acceptance for over 35 years. The fees have fluctuated over the years and sometimes leaving unstable transactions and profit margins. My ecommerce site(s) are really hurting profit wise, due to the products sale...
I am a local and ecommerce merchant that depends on PayPal's checkout payment system and credit/debit cards acceptance for over 35 years. The fees have fluctuated over the years and sometimes leaving unstable transactions and profit margins. My ecommerce site(s) are really hurting profit wise, due to the products sale price with all fees involved overcoming the profit. My sites offer all cryptocurrency acceptance, which still has to go through the PayPal payment system. I am not totally sure and a little confused as how it works with PayPal accepting all cryptocurrencies. I have not had a problem so far with the bitcoin transactions, but only to not understand how the fees are applied. So far I can not elaborate on the pros and cons of what the future holds. However, I do feel that the payment system may have something to do with the slowdown of clientele. I am actually trying to decide if some of my sites be put on hold or closed until all the policies and procedures or set. This will allow me to know and understand where my business is going in the future.
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sharpe 6 years ago Super Hero
I think this a news many of us the Paypal users(not merchants) expected for years but as we see from the PayPal CFO statement this wasn't done before because of the btc volatility and effect of it over the merchants who could loose money because of it. So after that being said I'm not an optimist about it because even...
I think this a news many of us the Paypal users(not merchants) expected for years but as we see from the PayPal CFO statement this wasn't done before because of the btc volatility and effect of it over the merchants who could loose money because of it. So after that being said I'm not an optimist about it because even when the bitcoin and the other cryptos are relatively stable like in the last few months the fluctuation still could reach 15-20% in just a single day which would be a problem of course for the merchants.
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cheztwins 6 years ago Hero Member
ugggggg...so like PayPal to only embrace something that is guaranteed to make them more money and less problems. This is not to say that this is a bad business model...but when you are one of the largest payment systems in the country don't you need to take some initiative ?
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