When PayPal effectively stopped letting consumers use their accounts as a go-between for Coinbase and all other crypto-exchanges, there was a call in the space for a decentralized version of PayPal.
Despite this call, such a platform still does not yet exist yet, despite numerous companies such as Dash and more recently, Themis, claiming that they will provide something like it.
As of today, the situation has arguably gotten worse. PayPal has changed their fee structure for international transfers in a fairly big way.
Reportedly, starting in May, international transfers on PayPal will become significantly more expensive than they are now.
No longer can we simply rely on rates similar to those that we find on Google and in exchange offices. The new rates will vary based on the countries that you are involving in the transfer.
Specifically, PayPal plans for a flat fee as the foundation for this new fee structure, with a surcharge of 3% per transaction. To make matters worse for the would-be PayPal user, there will also be a special fee based on the currencies that you are using in the transfer.
All in all, this appears to be the highest fee structure in existence next to those offered by traditional banks, globally.
Logically, it would seem that unless a large group of users do not care about this change or are completely unaware of it for quite some time, PayPal may soon be in trouble. This brings the question: what is Paypal’s explanation for doing this?
If you’re interested in the full answer, look no further than Paypal’s policy updates page, which is linked to this article.
In short, most of what has been reported seems to be true.
Some countries will have significantly higher fees although, what is more striking is the fact that PayPal will effectively charge more if the money is sent to a country that is not the United States or Canada or the regions that it terms “Northern Europe, Europe I, and Europe II.”
In addition to this, it is interesting that a 4.99 USD base fee, along with higher added fees, are charged if the countries fall outside of those listed in Paypal’s policy update.
Seemingly, this can only mean good news for the crypto space, especially in the case of emerging markets, which would fall outside of Paypal’s prepared list for this policy change. The question that remains is: how can we, as crypto insiders, best inform the global populace about this issue?
One could argue that this all boils down to trust. If we want PayPal users to change services then we, as an industry, need to provide an alternative that these users can easily feel comfortable with. The exact way in which this can be done remains to be seen, but it could be just over the horizon.
By: BGN Editorial Staff