Crypto currency against PayPal – a battle for the future of payments

Digital currencies quickly replace traditional means of payment, such as PayPal. While the method offered by PayPal is the best in recent years, carrying out a transaction in the crypto currency, many are discovering more and more advantages.

There are many complaints and disappointments in the services of PayPal different users due to the fact that they were denied access to their hard-earned funds for several months, resulting in private individuals and corporate organizations falling into large debts. Customers do not understand these processes from time to time, and all they want is a return of the purchased product / service.

Although PayPal CEO John Donahoe mentioned in a statement that PayPal plans to integrate digital wallets with the PayPal system in the future, more people are turning to crypto-currencies.

Although crypto-currencies have their drawbacks, because people tend to send money to the wrong accounts more often as a result of the confusing state of the purses, they are probably a way of payment in the future.


PayPal is a centralized system and therefore decides how many users pay for each transaction. This fee is sometimes very high when compared with crypto-currencies. You will be forced to pay up to 5-7% of what you transfer. On the other hand, crypto-currencies are decentralized means of performing financial transactions. This means that there is no specific body that sets commission fees. Small amounts collected by the network are paid to the miners as a reward for confirming the transaction. Consequently, these low commissions for transactions in crypto-currencies advantageously compete with PayPal.

Let's compare prices a little. We will start with the most famous crypto currency – Bitcoin. A few days ago, the Bitcoin board reached an 6-month low, thanks to the introduction of SegWit. It is expected that in the future, widespread implementation in the network, drastically cut costs. Ethereum has an average fee of 0,79 dollars and an average transaction fee of 0,27 dollars – according to BitInfoCharts. This is another great option – since the transaction is confirmed in a minute or less. A cheaper way is to use Litecoin, which is known for having one of the lowest commission rates among all crypto currencies, and is also a crypto currency with an active community from 2013 of the year. The average Litecoin rate is 0,35 dollars, and the average transaction commission is 0,058 dollars.

Speed ​​of payment

As for speed, although both transactions are instantaneous, things can go wrong. In PayPal, funds can be frozen for up to 180 days. A financial institution associated with a PayPal account can also be a serious impediment to the timely execution of payments, whereas when paying for a crypto currency, there is no such problem. Nevertheless, everyone knows cases when transactions in crypto-currencies, such as Bitcoin, took a very long time. This can also happen when the user sets a low commission. It is always recommended to check the current transaction fees in Blockchain of your crypto currency before any transaction begins. However, here as an alternative there is a wide range of crypto-currencies to choose from, like Litecoin, Ethereum, Monero, etc., which are excellent coins and widely recognized.

There are a few more problems that have crypto-currencies. For example, if you send money to the wrong address, you can never return it. So you need to be more careful.


PayPal proved that this is not the best way to accept payments over the Internet, because there were often problems with payments when PayPal had to intervene in such situations. Sometimes the solution of such questions was in favor of the wrong side. In addition, PayPal accounts are easily hacked. A hacker can use many methods to access a PayPal account.

With the crypto currency, the rollback of funds is impossible and the transferred funds can not be returned. After the transaction is initiated and added to Blockchain, it is impossible to change anything. The buyer and seller are very comfortable, as the funds will be credited to the account to which they were sent in a matter of minutes. Hacking a secure account is much more difficult than PayPal. The Bitcoin purse installed on the computer almost does not lend itself to hacking and is known to be the safest way to protect your Bitcoin. There are also other options, such as Web wallets with 2FA or hardware wallets, such as Trezor or Ledger.

Cross-border payments

As for the decision on cross-border payment, PayPal is limited in some countries or completely inaccessible to citizens there. This makes using PayPal to accept or send payments internationally is not the best option. On the other hand, crypto-currencies have nothing to do with geolocation. You can send payments and receive payments from people anywhere in the world. There are some countries where crypto-currencies are not allowed, but people are still finding a way to use them.

User Experience

As for the convenience for the user, PayPal is undoubtedly easy to use and a beginner does not need special knowledge to send or receive funds. The interfaces of crypto-currency wallets are just as easy. Depending on the platform developers, there are several wallets for different coins, given the choices, one can choose for himself the preferred one in use. In addition to the fact that your digital currencies are stored in purses, you have more controls, and you can use exchange of crypto-currencies. These companies also from time to time improve their platforms to make the platform easy to use for their users.

In conclusion, we do not know what technological achievements will take place in the future for financial transactions, but it is clear that modern technologies outperform the old and reliable methods of conducting financial activities in their game. PayPal is a giant created in the payment industry, but crypto-currencies are receiving more and more applications every day. Despite the fact that crypto-currencies are not so easy to use for an ordinary person, people will surely adapt, as is the case with credit cards and online transactions.

Author: Yevgeny Yakubenko, AnalystFreedman Club Crypto News

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