Freelancers, digital nomads and Internet employees around the world will have something to talk about this morning when they wake up to the news that PayPal may begin to see the lack of wisdom in its business model.
Recently, PayPal has launched an incentive system based on cryptocurrency for its internal staff, as explained previously on CCN. This news was immediately followed by an announcement of the famous cryptocurrency exchange, Coinbase, which would now facilitate fiat withdrawals on customers' PayPal accounts.
After filing a patent for their blockchain-based solutions at the start of this year, it seems like PayPal is dipping something more of its cryptic waters. The company's Google Play app has recently been surpassed by the Square Cash app with cryptography and the road to a cryptographic / blockchain conversion seems more likely from day to day.
Coinbase – PayPal withdrawal
According to the announcement of the Coinbase blog:
"Starting today, US customers can instantly withdraw Coinbase balances on PayPal, providing even faster access to their funds through one of the easiest and most widely used payment platforms in the world." These withdrawals are not just fast; they are free and do not involve any cost. "
Apparently, Coinbase answered the question of its customers about the introduction of a PayPal option. According to the post:
"Coinbase customers have been clear: you want to be part of the open financial system, we believe that this means something more than just cryptocurrency – it means having the flexibility to use it as and when you want."
U.S. customers will no longer require an ACH account or a federal account to withdraw funds. Although, it is assumed that PayPal still needs to be connected to existing bank accounts if large amounts of money are to be transferred.
The new feature is already available to customers located in the United States, while global customers will have to wait until a date not specified in 2019.
Escape from PayPal? Or absorbed by it?
Anyone who has been using PayPal for a certain period of time will become familiar with his unreasonable, and I would venture to say, unethical tariff structure.
According to a recent survey, 29% of freelancers would prefer to be paid in cryptocurrency, rather than through existing systems. Given the general ease of use of PayPal even for those who are not technically prepared, it is rather an accusation.
Currently holds the same market capitalization of the entire cryptographic space, PayPal now has the opportunity to get closer to become more crypto-like, with exchange compatibility, lower commissions and who knows, perhaps future encrypted portfolios and instant exchange rates .
The other option is one in which the corporate monster throws some crypto-friendly clothes to attract short-term people, but eventually returns to type with practices that maximize long-term profit – not unlike a French president in difficulty at the moment.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. It holds investment positions in the currencies, but does not carry out trading activities in the short term or daily.
Featured image courtesy of Shutterstock.