PayPal is known all over the world due to the fact that it allows people and enterprises to send and receive money almost instantly. But there is a big problem, and it has very high fees and unfavourable currency conversions. Now, in its latest policy update, PayPal announced a new transaction fee for customers.
PayPal Inconvenient for Transactions – Too High Fees
On April the 19th, PayPal modified some of its rules, and among them, it has changed the way fees are calculated. But compared to virtual currencies, the fees that PayPal imposes are much higher.
PayPal explained the new Fee scheme as follows:
“We’re removing the variable rate pricing for sending money to friends and family parts who have PayPal accounts in any country other than the United States when you transfer money doing PayPal balance or your bank account and including a current flat fee of $2.99 or $4.99 per transaction depending on the recipient’s country.”
Clearly, when cryptocurrencies were not as famous as now, PayPal was a great choice for individuals that needed to receive or send payments all over the world. But since virtual currencies are a real competitor to PayPal in 2018, the new fees will certainly not help the financial company.
Moreover, transaction fees have ben reduced during the last year in the crypto environment. There are currently several virtual currencies that allow people to send money immediately form one place to another and for just a fraction of the fees charged by PayPal.
At the same time, Bitcoin is constantly upgrading its network. Every single month, more platforms and bitcoin wallets add support to SegWit addresses. In this way, transaction times and fees are strongly reduced. By the end of the year – some experts believe that before – the off-chain scaling solution for Bitcoin may be available. The Lightning Network could allow Bitcoin to scale and process an incredible number of transactions at almost no fees and in just seconds.