{"id":1075,"date":"2023-04-25T10:52:47","date_gmt":"2023-04-25T10:52:47","guid":{"rendered":"https:\/\/hiribi.com\/blog\/?p=1075"},"modified":"2023-04-25T10:52:48","modified_gmt":"2023-04-25T10:52:48","slug":"paypal-bitcoin-an-alliance-that-is-profitable","status":"publish","type":"post","link":"https:\/\/hiribi.com\/blog\/paypal-bitcoin-an-alliance-that-is-profitable\/","title":{"rendered":"PayPal & Bitcoin. An alliance that is profitable"},"content":{"rendered":"\n

Some background<\/strong><\/h2>\n\n\n\n

The digital payment PayPal made a shockwave\nin 2020 when it announced that it would offer cryptocurrency services. Since\nthe foray into the crypto sphere, PayPal users can now buy, sell, and checkout\nwith digital coins, including Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.\nHowever, Bitcoin seems to be the asset that is most sought after.<\/p>\n\n\n\n

Naturally, PayPal has also expanded its\ncrypto-related products to Venmo, a popular online wallet owned by the\nplatform. Similar to PayPal, customers can execute buy or sell orders with\ncryptocurrencies using the Venmo app.<\/p>\n\n\n\n

With the most valuable token in the digital market combined with the most well-known online payment platform, Bitcoin and PayPal have created an alliance that is primed to further push crypto adoptions while disrupting the online payment industry. <\/p>\n\n\n\n

How PayPal makes money<\/strong><\/h2>\n\n\n\n

To understand how PayPal can benefit from\nentering the crypto market, you need to understand its core business\noperations. Essentially, PayPal charges fees whenever a transaction occurs on\nits platform, whether from <\/em>merchants or\nconsumers who executed the order. <\/p>\n\n\n\n

The fee can stem from a wide range of other services. Those services include currency conversions, fund transfers between customers\u2019 accounts, cross-border transactions, miscellaneous fees, and, of course, cryptocurrency transactions. <\/p>\n\n\n\n

The fee structure for crypto transactions<\/strong><\/h2>\n\n\n\n

When you use Bitcoin to pay for an online\nmerchant via PayPal, that seller won\u2019t receive the Bitcoin directly, but rather\nthe token will be exchanged into fiat before the transaction go through. And\nPayPal siphons a percentage <\/em>from the\nexchange as a fee. 2.3% for transactions less than $100, for example. <\/p>\n\n\n\n

Also, when the platform first accepted\ncrypto in 2022, it didn\u2019t allow moving coins out of its wallet. Not until 2022\ndid it offer the feature to its users. But now they have to pay a fee if they\nwant to transfer crypto to an address outside of PayPal.<\/p>\n\n\n\n

As Bitcoin, and cryptocurrency as a whole, will likely increase its real-world usage and popularity, this represents a tremendous opportunity for PayPal. With PayPal gradually establishing itself as the de facto exchange for trading digital tokens, it will attract more users and boost the fee revenue.<\/p>\n\n\n\n

Customers love crypto<\/strong> <\/h2>\n\n\n\n

Despite the cost of owning Bitcoin via PayPal, early reports, after PayPal adopted the crypto strategy, showed that customers were using the app more because of crypto offerings. <\/p>\n\n\n\n

PayPal\u2019s goals are not only to <\/em>appeal to new users but also to entice existing customers to use the app more. The company once reported that users open the app more frequently after they sign up for crypto services.<\/p>\n\n\n\n

Also, a report published by Mizuho\nSecurities in 2020 indicated that nearly 25% of PayPal users participated in a\nBitcoin transaction. While PayPal doesn\u2019t publish much detail regarding its\ncurrent crypto business, the early report showed a promising result.<\/p>\n\n\n\n

In addition, consumers might be using Bitcoin as the main medium of exchange in the future. Jose Fernandez da Ponte, senior vice president and general manager for PayPal\u2019s blockchain, said in an interview, \u201cWe think a substantial amount of commerce and payments will happen on digital currencies in the future, and we are playing the long game.\u201d<\/p>\n\n\n\n

New opportunity for PayPal<\/strong><\/h2>\n\n\n\n

Although the crypto market might be\nexperiencing a crypto winter, PayPal still doubled down on its commitment and\nexpansion into the digital coin landscape. Particularly, the platform partnered\nup with MetaMask, a popular crypto wallet, late last year. <\/p>\n\n\n\n

The move aimed to expand the company\u2019s\nreach to new users, as well as to allow existing customers to conveniently\ntransfer tokens between the two wallets. The partnership will also integrate\nPayPal as a payment option on MetaMask, generating an additional source of\nrevenue. <\/p>\n\n\n\n

Product manager Lorenzo Santos at Consensys, the developer of MetaMask, remarked in a press release, \u201cThis integration with PayPal will allow our U.S. users to not just buy crypto seamlessly through MetaMask, but also to easily explore the Web3 ecosystem.\u201d<\/p>\n\n\n\n

What does this mean for Bitcoin?<\/strong><\/h2>\n\n\n\n

Bitcoin, and other cryptocurrencies, are going through a slump right now due to unfavourable macroeconomic conditions. And it doesn\u2019t seem the market will recover any time soon, at least in the short term. <\/p>\n\n\n\n

However, as for long-term growth, Bitcoin\nholds multiple catalysts for explosive growth in the future \u2013 and among them\ncould be PayPal. With more than 420 million active users as of 2022, PayPal\nrepresents a much-needed stimulant for Bitcoin\u2019s long-term rise.<\/p>\n\n\n\n

As well, with more than 26 million merchants in its network worldwide, PayPal can serve as a springboard to precipitate Bitcoin\u2019s ultimate goal as the main payment method. <\/p>\n\n\n\n

Conclusion<\/strong><\/h2>\n\n\n\n

Overall, the partnership between PayPal and\nBitcoin has created a profitable alliance that has the potential to\nrevolutionize the online payment industry. PayPal\u2019s expansion into the crypto\nsphere has also enabled its users to easily buy, sell, and checkout with\ndigital coins, including Bitcoin.<\/p>\n\n\n\n

As Bitcoin and other cryptocurrencies\nbecome increasingly popular, this represents a great opportunity for PayPal to\nattract more users and boost its fee revenue. Despite the current slowdown in\nthe crypto market, PayPal\u2019s commitment and expansion into the market suggest an\noptimistic future for both PayPal and Bitcoin. <\/p>\n","protected":false},"excerpt":{"rendered":"

The digital payment PayPal made a shockwave in 2020 when it announced that it would offer cryptocurrency services. Since the foray into the crypto sphere, PayPal users can now buy, sell, and checkout with digital coins, including Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. However, Bitcoin seems to be the asset that is most sought after.<\/p>\n","protected":false},"author":1,"featured_media":1076,"comment_status":"closed","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[77,80,87],"class_list":["post-1075","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-bitcoin","tag-paypal","tag-ways-to-profit","entry"],"_links":{"self":[{"href":"https:\/\/hiribi.com\/blog\/wp-json\/wp\/v2\/posts\/1075","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hiribi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hiribi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hiribi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hiribi.com\/blog\/wp-json\/wp\/v2\/comments?post=1075"}],"version-history":[{"count":1,"href":"https:\/\/hiribi.com\/blog\/wp-json\/wp\/v2\/posts\/1075\/revisions"}],"predecessor-version":[{"id":1077,"href":"https:\/\/hiribi.com\/blog\/wp-json\/wp\/v2\/posts\/1075\/revisions\/1077"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hiribi.com\/blog\/wp-json\/wp\/v2\/media\/1076"}],"wp:attachment":[{"href":"https:\/\/hiribi.com\/blog\/wp-json\/wp\/v2\/media?parent=1075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hiribi.com\/blog\/wp-json\/wp\/v2\/categories?post=1075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hiribi.com\/blog\/wp-json\/wp\/v2\/tags?post=1075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}