Users can make online payment through many different ways, and one of the most promising methods is Cryptocurrency. Usurping PayPal’s leadership in online remittance is not a day’s job. However, Paypal is making some changes in its policy which may not be accepted by everyone.
The PayPal Policy Changes
There is massive competition in the online money transfer industry. Hence, operators need to pay keen attention to the activities of their rivals, as well the kind of policy changes they make which may not be favourable to some customers.
PayPal’s new move is straightforward. It is introducing a flat rate for sending money outside of the United States. This new fee can sum up to $4.99 for every transaction.
That isn’t all, PayPal is also introducing an additional rule for both credit and debit card customers. This same flat rate will apply to their transactions, plus a fixed fee based on the currency, and also a surcharge of 2.9% of the amount being transferred.
For instance, sending $200 to a country with a $5.8 (2.9% surcharge) and other fees would leave the recipient with $189 or less. This new policy will not be favourable to users who regularly use PayPal for money transfer.
But this new scheme doesn’t apply to online purchases made with PayPal. It only applies to those who transfer money to friends and family members. Any transaction labelled as a non-purchase will attract the new fees. This may force customers to look for alternative services because it is becoming an unfavourable option for sending money.
What’s in for Cryptocurrency?
PayPal has made some positive impact in the Industry, but these new changes will push many users away from it. Especially, with unverified customers being unable to transfer funds and make payments. This isn’t good for business.
Other means of online payment like TransferWise – which is relatively cheaper than PayPal – will benefit from the new policy. But unlike traditional payment systems, cryptocurrencies can be a lot cheaper when sending money across the world.
Using Cryptocurrencies doesn’t require a lot of personal data. What is important is setting up a wallet, which is simple and straightforward. Users may follow a KYC procedure when converting cryptocurrency to fiat currency, but exchange operators are making progress at processing such requests quickly. This PayPal policy changes may quicken the full adoption of cryptocurrencies as a means of sending money across the globe.
