PayPal is the biggest player in the online payment business for customers and businesses just as Amazon and Google are in the online retail business and search engine respectively. However, it could be observed that it was one of the businesses that strongly opposed using and support for Cryptocurrency.
Going by the recent happenings in the cryptocurrency market like the successful launch of Coinbase-Paypal partnership that will ensure that Coinbase users in the U.S could easily withdraw their Coinbase balance to their linked PayPal account at zero fees, one could observe that PayPal is now loosening some of its strict policies on cryptocurrencies.
The possible reasons for this occurrence could include:
1) High rate of interest and users migration to the new technology: it could be observed that irrespective of all the negative news and sponsored advertorials to prevent the public from participating in crypto projects, that more people are entering into the crypto space. “What is Bitcoin?” was top Google definition search in 2018, This could mean a continuous decrease in the number of potential users of PayPal.
2) Participation of PayPal’s former workers in crypto projects: in an organization like PayPal, workers who had previously worked with them and had attained top positions could easily team up with new organizations in the crypto industry to establish a stronger and more efficient substitute for it.
3) To avoid been seen as self-centered, greedy and not neutral: the rate at which cryptocurrency payments are completed with less hassle and fees that are lower is quite in opposition to that of PayPal. This could mean that PayPal is voracious by charging users with exorbitant fees to carry out transactions that will still take time to complete.
4) Increased participation of banks: unlike before where banks vigorously opposed cryptocurrency as an ‘anonymous scam‘. Banks in U.S, Europe, and the Middle East has partnered with cryptocurrency platforms to improve the adoption of cryptocurrency. This could as well have propelled PayPal to relax its stringent previous position on cryptocurrency.