There are a lot of online payment systems out there, but cryptocurrencies are gradually gaining recognition as means of international payment. Although PayPal is still far ahead in terms of popularity among users, the latest company’s decision may actually deter some customers from further usage of the service, especially those who often transfer their funds abroad.
According to the newly introduced policies by PayPal, flexible pricing for sending money outside of the US is discontinued, and a new flat fee is adopted instead. The final cost will depend on the recipient’s country of residence. The calculations show that cost of money transfer can get as high as $5 per operation.
Moreover, the holders of debit and credit cards will have to pay additional a fixed fee based on the currency, and a surcharge of 2.9% of the transfer amount. If someone tries to send $100, after all fee deductions the transferred amount will be cut to about $92. It is expected that Pay Pal customers will be quite disappointed by the company’s move. However, these fees are not charged when a Pay Pal user makes a purchase of any kind, so the new regulations only concern people who transfer their funds abroad to their families or relatives.
Cryptocurrencies, in contrast, can offer much cheaper international money transfer, which inevitably will draw people’s attention to this financial alternative. It seems like it’s going to be another boost for crypto adoption.