PayPal, one of the most popular payments transfer systems, could be affected if it doesn’t adapt to the competitive crypto and blockchain market. There are many startups and firms that are developing new crypto-related products that would have an impact on PayPal’s market performance. In a recent interview with Yahoo Finance on May 7, John Rainey, the Chief Financial Officer of PayPal, explained that the firm is hesitant about getting involved in the crypto sector.
Could PayPal Lost Market Against Other Cryptos?
During a recent interview with Yahoo Finance, Rainey explained that PayPal allowed merchants to accept payments in Bitcoin (BTC). However, they had to shut this option down because of the instability and volatility of the digital asset.
At the same time, he explained that they are also analysing the possibility to adopt blockchain technology and how to work with digital assets. Nonetheless, he believes it is still early to think about it.
On the matter, he commented:
“We have teams clearly working on blockchain and cryptocurrency as well and we want to participate in that in whatever form it takes in the future. I just think it’s a little early on right now.”
At the same time, he mentioned that PayPal is focused on other areas rather than incorporating crypto-related payments. Moreover, he explained that PayPal has invested in Uber since they want to build a payments platform. Instagram has also partnered with PayPal becoming a payment provider for people shopping on this social media platform.
In the past, PayPal has been filing a large number of crypto and blockchain related patents but it seems that 2019 looks like a different year for the company. PayPal is not the only firm that is affected by the surge and expansion of new startups and cryptocurrencies. Banks and other financial institutions are starting to pay close attention to the blockchain and crypto markets.
The Bank of America, for example, mentioned that they could be affected negatively by the expansion of digital assets if they are not able to adapt to these new times. If PayPal fails to face the current challenges that the firm is facing and how to deal with them, it will be difficult for it to remain competitive.
However, earlier this year, Coinbase, one of the most popular cryptocurrency trading platforms in the market, announced that U.S. customers can instantly withdraw their balances to PayPal.