Paypal has introduced new policies which make the competitive transactions fees of Bitcoin and other cryptocurrencies a cheaper, better alternative.
PayPal, the world's largest merchant payment processor, has announced a new set of policies which will see the introduction of new fees and restrictions for its teeming customers.
According to the new rules, sending money out of the United States will incur a $4.99 fee plus an additional 2.9% charge if the transaction is partially filled with a debit or credit card, and a flat rate based on the currency used. The rules extend to residents of other countries with slight changes made to the fees.
This is a significant rise in fees for Paypal users and many won't agree with it, especially when alternatives are available.
Certainly, these new fees will drive a significant amount of people to other payment systems, with Bitcoin a viable option.
Despite fee increases in 2017 due to network spamming by Bcash supports, Bitcoin is now a lot cheaper to use than PayPal and cheaper than Bcash - a Bitcoin transaction will be confirmed in under an hour for around $0.21.
No doubt PayPal is a huge global brand and it is faster but Bitcoin is gaining global recognition and there are ongoing efforts to make it faster.
In addition to the fee increment, Paypal also tightened its privacy laws. As it stands, unverified accounts will not be able to make some transactions.
"We’re changing the balance functionality for your PayPal account depending on whether we have been able to verify identifying information that you provide to us. If we have not verified your identifying information, a balance in your PayPal account can generally only be held in your PayPal account and transferred to a linked bank account or debit card," the firm said.
Because linked bank accounts generally require identification in the first place, this rule will drive people concerned about their privacy to Bitcoin as it offers close to anonymous transactions and gives its users complete financial privacy.
If PayPal introduced these new rules in order to drive the competition around they need to think twice. These ideas won't work in a world where people are concerned about their privacy and always seek cheaper alternatives.