- US users sending funds outside the US will have to pay a $4.99 fee which is more expensive than sending money through Bitcoin
- Bitcoin’s transaction fee which is less than $0.2 makes the most dominant cryptocurrency a way more viable option to transfer money – as well as a more private one
Last year, the leading payment processor PayPal has announced new fees and restrictions that could have a massive impact on the cryptocurrency market. Knowing that cryptocurrencies offer low-fee and even fee-less forms of value transfer, PayPal dwarfed the competition with global adoption and brand awareness. The company even pointed to the ease of handling eBay transactions, personal funds and business funds that is going to happen on the platform real soon.
A $4.99 Fee For US Users Sending Payments Abroad (Plus 2.9% Charge If The Transaction Is Filled With A Credit/Debit Card)
Basically, PayPal’s new policies include a $4.99 fee for US users sending international payments (plus a 2.9% charge if the transaction is filled with a debit/credit card). There are similar measures implemented for users in other countries too. While the fees are not staggering, the new policies make international micro transactions unviable.
Even though Bitcoin once had higher fees than PayPal has now, the things have changed. Currently, sending a Bitcoin transaction is possible in under an hour for around $0.21 which is absolutely cheaper compared to PayPal. Despite the speed of PayPal, Bitcoin is currently many times cheaper and has an advantage of massive international awareness.
Fees Are Massively Increased, Making Small Transactions On PayPal Unviable
The massive increase in PayPal’s fee structure for sending money abroad definitely makes small transactions completely unviable and results in making feeless cryptocurrencies a more attractive option – especially in times when Bitcoin is hitting new records for its low fees and cost-effective methods of transferring funds at $0.029 per transaction on average.
What’s interesting is that PayPal won’t stop here. They will continue updating the fee structure and will certainly add new policies in the future. Their announcement has introduced policies surrounding user privacy too, stating:
“We’re changing the balance functionality for your PayPal account depending on whether we have been able to verify identifying information that you provide to us. If we have not verified your identifying information, a balance in your PayPal account can generally only be held in your PayPal account and transferred to a linked bank account or debit card.”
Linked bank cards generally require identification in the first place. This is another thing that makes PayPal vulnerable for many – and a thing that makes Bitcoin and other cryptocurrencies appealing.
Could Cryptocurrencies Like Bitcoin Replace PayPal?
As the most dominant cryptocurrency out there, Bitcoin is now a cheaper way to transfer funds when compared to PayPal. With a fee of less than $0.2 at the time of writing, Bitcoin is definitely more private and cost-effective when sending payments.
On a more general note, cryptocurrencies are far more appealing way of sending interpersonal payment. More secure and more affordable, they definitely enter a position of competing with the biggest online payment system in the world.
Frequently Asked Questions (FAQ) On PayPal Vs. Bitcoin: Transaction Fee Comparison
Below, we are listing some of the most common questions when it comes to Bitcoin vs. PayPal and the transfer of money through both platforms.
- Who offers better exchange rates for transactions?
If you are sending $1,000 to the UK from US, you need to look at the mid-market rate. While PayPal takes $4.99 out of your account for the transfer and an additional margin of 2.5%, it is easy to see that Bitcoin and its $0.2 transaction rate is a better option. The best way to find a good exchange rate, however, depends on your choice of a Bitcoin platform.
- Who offers lower fees for transactions?
If you are depositing money through Bitcoin, you are expected to pay $10 for a wire transfer and the ACH transfers are free. If you are buying Bitcoin from a US bank account, the fee is 1.49% with a $0.15 minimum, same like the one on the Coinbase USD wallet. If you are buying Bitcoin with a credit or debit card, the fee is 3.99%.
For sending money to another PayPal account within the US and Canada, there are no fees. However, for paying with credit or debit card or PayPal Credit in US and Canada, there is a 2.9% fee plus a fixed amount of about $0.30. For other countries, PayPal charges $2.99 to $4.99 depending on the country for using the PayPal balance – and 2.9% plus a flat fee that depends on the specific country you are sending the funds to as well as the fee based on the currency.
Lastly, the best way to know the fee structure is by using a Bitcoin vs. PayPal calculator that shows you the fee breakdown for sending any amount to any country from the United States.
For any questions in relation to the latest PayPal Policy, Make Sure To Click The PayPal Contact Us Button
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Cameron And Tyler Winklevoss: It’s Bitcoin’s Bottom Of The First Inning
"We still think it’s the bottom of the first inning."The Winklevoss twins first invested in bitcoin back in 2013 and they said that at first bitcoin didn’t sound like a good idea but after a few tequila shots it started making sense. Now, they have about 1 percent of all bitcoin outstanding. The twins reportedly plowed millions from their settlement with Facebook into bitcoin of course. After they saw that the investment balloon will be estimated for billions of dollars, they claim to have taken away the sting from having Facebook kidnapped from them. The Wall Street Journal apparently asked them what happens when the twins meet with Zuckerberg at a crypto conference and the twins answered:
“Welcome to the party, what took you so long?”Regarding Libra, Facebook’s cryptocurrency is looking less as a cryptocurrency. David Marcus who works at the development center for Libra reportedly wrote to the lawmakers:
"We want, and need, governments, central banks, regulators, non-profits, and other stakeholders at the table and value all of the feedback we have received.”Meanwhile, the policymakers have a hard time to understand and to find a way how to handle Libra but they can’t stop bitcoin at least not anymore. Cameron and Tyler Winklevoss noted:
"To shut down bitcoin you have to shut down the internet...like North Korea. Countries will have to play with it."As per the coming altcoin news, the twins see future where Zcash and Ethereum will have a very important role mainly because of their privacy features. As for Gemini, the competitive landscape is only warming up. Poloniex, for example, allowed purchasing cryptocurrency by using credit and debit cards, Binance is coming to the United States and CEX.io also opened a new US office.
ECB Official Warns: Libra Could Be Very Dangerous Without Rules
‘’It’s out of the question to allow them to develop in a regulatory void for their financial service activities, because it’s just too dangerous. We have to move more quickly than we’ve been able to do up until now.’’The entire ECB executive board believes that digital currencies will represent the ‘’wake-up call’’ for regulators around the world. He believes that this could result in regulatory entities making improvements in their operations. Facebook’s plan is to launch a digital currency which will trigger central banks and all policymakers across the world. The U.S. congressional committee asked the social media giant to stop the operations regarding Libra. Also, the House Financial Services Committee noted issues that touch the security nature of the cryptocurrency and Facebook’s troubled past regarding data privacy:
‘’Because Facebook is already in the hands of over a quarter of the world’s population, it is imperative that Facebook and its partners immediately cease implementation plans until regulators and Congress have an opportunity to examine these issues and take action.’’The House Financial Services Committee also warned that if Facebook decides and launches Libra prior to the legislative solutions, the result will be a new ‘’Swiss-based financial system that is too big to fail.’’ The committee also stated that it will further hold public hearings on crypto-related matters next week. As noted in the latest cryptocurrency news, the Reserve Bank Of Australia Governor Philip Lowe indicated there are a lot of regulatory issues regarding Libra. In Asia, the Bank of Japan also warned that Libra poses a huge threat to the current financial systems.
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