PayPal is known across the globe for offering people the opportunity to send and receive money almost instantly. However, the service is characterized by very high transaction fees and unfavorable currency conversions. Now, PayPal in its latest policy update announced a new transaction fee.
On 19 April, PayPal updated some of its rules, and one of those modifications was the changing the way fees are calculated. Nevertheless, the PayPal fees are much higher in comparison to those of the virtual currencies.
PayPal explained the new Fee scheme as follows:
“We’re removing the variable rate pricing for sending money to friends and family parts that 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.”
European and users from other countries will apparently not experience that new fee structure. The new one will only implement to US citizens that have their accounts located there.
PayPal before the popularity phase of cryptocurrency was a great choice for individuals that needed to receive and send payments all over the globe. However, since cryptocurrency became a real competitor to PayPal in 2018, the new fees will be definitely a drawback for the company.
Furthermore, in the crypto market, the transaction fees have been reduced during g the last year, while there are some cryptocurrencies that allow instant money transfers for just a fraction of the PayPal fees.
Moreover, Bitcoin is currently upgrading its network. Every single moth, more platforms and more Bitcoin wallets add support to SegWit addresses. Consequently, the transaction time and fees are strongly reduced. The off-chain scaling solution for Bitcoin may be available by the end of the year or even before according to some analysts. The Lighting Network could permit Bitcoin to scale and process an incredible number of transactions at almost no fees in few seconds.
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