Digital currencies are gradually replacing conventional means of payment such as PayPal. Although the way of providing these forms of payment is better in recent years, cryptocurrencies to be precise have been an eye-opener for many, leaving all methods of exchange archaic relative to cryptocurrencies.
Complaints have emerged as to how irritating PayPal systems have been to multiple customers, and how they have been refused their hard-earned funds for months, putting people and business organisations in huge debt. Customers often don’t grasp these procedures, because what they want is a reimbursement or a product / service they’ve bought.
While eBay CEO John Donahoe said in a statement that PayPal aims to merge digital wallets with PayPal in the future, more people are moving to cryptocurrencies.
While digital currencies have their pitfalls, as people prefer to transfer funds to incorrect accounts much of the time as a result of the frustrating state of wallet addresses, they are definitely the payment system of the future.
Reasons Why Crypto Is Better Than PayPal
1. Cheaper – Transaction Fees
PayPal is a centralized organization that thus has a group of representatives who decide how many customers pay for each purchase. These fees are sometimes very high when compared to digital currencies. You’re going to be asked to pay up to 5-7% of what you’re exchanging. Cryptocurrencies, on the other hand, are anonymous ways of carrying out financial transfers. This means that there is no formal body setting transaction costs for blockchains in which cryptocurrencies run. The tiny lees charged by the network are paid to the miners as compensation for validating the transaction. As a result, this low fee for cryptocurrency has made the use of cryptocurrency the top option toward PayPal.
Let’s only take a little bit to compare the rates. We’re going to start with the most popular cryptocurrency – bitcoin. A few days earlier, Bitcoin fees were down to 6 months thanks to segwit adoption. The lighting network is expected to reduce the fees significantly in the future. Ethereum has an average transaction fee of $0.79 USD and a median transaction fee of $0.27 USD, according to BitInfoCharts. This is another fantastic choice – as can be checked in a minute or less. Litecoin is a cheaper way to do it. Litecoin is considered to have one of the lowest cryptocurrency payments since 2013, as well as being a cryptocurrency with an involved group. Litecoin average charge is $0.35 and the median transaction cost is $0.058. And there’s also the option to move with a zero charge – using Nano
2. Faster – Transfer Speed
As far as pace is concerned, while all transfers are immediate, something can go wrong with that of PayPal that might make the funds unusable for up to 180 days. The financial institution linked to the PayPal account can still be a big hindrance to making timely transfers, although the cryptocurrency transaction costs may also be simplified by raising the prices charged to make the purchase which would still be much cheaper than the PayPal costs. However, there have been occasions when cryptocurrencies, such as Bitcoin, have taken too long to transfer, most of which are due to low transaction costs set by the wallet. It is usually a safe idea to review the latest transaction fees on your cryptocurrency block browser before beginning any transaction. And since there is a broad variety of cryptocurrencies to pick from, there are some like Litecoin, Ethereum, Monero, Nano, etc. that are fantastic coins and commonly known that you can make use of for online transactions.
There are a few other issues that cryptocurrencies have to deal with. For eg, if you send funds to the wrong address, you can never get them back. But you need to be extra careful with that. Another thing that can happen is that Bitcoin and Bitcoin Cash have been mistaken – this has occurred already.
This is not a technical concern, but a problem that new users can face. But when people learn how to use smartphones, people will learn how to use cryptocurrencies.
3. More – Decentralized Authentication
PayPal has proved not to be the easiest way to take payments over the Internet in recent years, when there have been concerns with penalties that are types with delays that force PayPal to interfere in those cases. Perhaps the settlement of those problems is in favour of the wrong side. In comparison, PayPal accounts are readily hackable. A hacker can use a lot of methods to enter a PayPal account.
Except for bitcoins, there’s hardly any money back, because the diverted assets can’t be called back. If the transaction is started and connected to the blockchain, it’s final. The buyer and the seller should be at ease as the money would be added to the account to which it was sent in minutes. Hacking a safe account is much more complicated than a PayPal account. The Bitcoin address stored on a paper wallet is almost unbreakable and is considered to be the best way to hold your Bitcoins stable. There are also choices for other cryptocurrencies – such as 2FA wallets or hardware wallets such as Trezor or Ledger.
4. Real – Cross-border Payments
As far as cross-border payment options are concerned, PayPal is limited in certain countries or not completely open to people there; making use of PayPal to accept or transfer payments abroad is not the safest choice. Cryptocurrencies, on the other hand, do not value geo-location. You can send payments to and accept payments from everyone in the world. There are several countries where cryptocurrencies are not allowed, but people still find a way to use them.
5. Smaller Chance – “Frozen” Account
As far as user-friendliness is concerned, PayPal is certainly easy to use, and a newbie should know pretty much what to do with sending and receiving transactions. However, som eof merchants and small business owner often get colluded with their account being freeze by PayPal.
Cryptocurrencies wallets are deleting that possibility. Depending on the platform creators, there are several cryptocurrency wallets for different currencies, as you may select the interface you find even simpler to use. Besides keeping your digital coins stored on accounts, you have more controls; you can even use cryptocurrency exchanges. These organizations are also making changes to their platforms, from time to time , to make the platform easier to use for their customers.
We do not know what technical developments the future brings for financial transactions in the near future, but as far as we know, new innovations are beating old and trusted methods of financial transactions. PayPal is a well-established leader in the payment business – but cryptocurrencies are adding more field every day. Even though cryptocurrencies are not that easy to use by a non-technical user, people would certainly respond to them like they did with credit cards and online purchases.