PayPal is a huge part of the e-commerce world – millions of us use the payment gateway to everyday to quickly finish the check-out process while we’re shopping online. It’s a simple way to pay using a single login across a massive variety of retailers, from clothing stores and train tickets to food delivery apps.
There’s no doubt PayPal will embrace cryptocurrency this year
Especially after John Oliver dedicated almost his entire episode of his HBO show, Last Week Tonight, to the subject of cryptocurrency, it’s becoming quite clear that digital coins are slowly going mainstream. It is only a matter of time until there is a PayPal-like gateway where people can pay for stuff using their crypto coins.
Actually – that already exists. Litecoin (LTC) recently launched LitePay, which has actually been somewhat of a disappointment since its debit card feature is still on hold. On top of that, people are complaining that there are too many requirements to sign up as a merchant on LitePay.
On top of that, a new company called Aliant Payments has a merchant payment processing service that accepts LTC, Ethereum (ETH) and Bitcoin (BTC).
But LitePay and Aliant are far from PayPal’s biggest threat on the market – Coinbase is. And Coinbase launched a payment gateway last month that essentially works in the same way makes, making that threat even larger.
Oh, and there’s one other big clue that this is the year: a week ago, PayPal filed for a patent related to a cryptocurrency fund transfer system that could possibly make Bitcoin (BTC) transactions fast and anonymous. We are assuming that the technology would work for other coins too.
So, it’s pretty clear that this company realized digital currency is the future – and it needs to play catch up.
But which cryptocurrency will PayPal pick?
The obvious (and most cliché) assumption would be that this global payment solutions provider would allow Bitcoin (BTC) transactions in addition to the credit card, debit card, and bank transfer options. So, there will be some way to link your PayPal account to a cryptocurrency wallet – or they will set up a wallet system of their own, perhaps.
But would they really choose Bitcoin (BTC)? Sure, it’s the most valuable and highly-traded coin on Earth – not to mention the original blockchain. However, BTC transactions are slow, costly, terrible when it comes to energy consumption, and we all know about its scalability problems. All of these issues have caused newer coins to pop up and tackle these issues, enabling faster transactions at a tiny fraction of the cost – and Litecoin (LTC) is one of them.
Bitcoin will most likely not be able to maintain its #1 spot for much longer, particularly with all of its inferiorities in comparison to technology like Nano (NANO) or VeChain (VEN). The faster, cheaper, and scalable options will rise above. LTC is certainly a contender
Why PayPal will probably go with Litecoin (LTC), among others
We can assume that they will add more than one crypto coin to include in their payment gateway, which means that Litecoin (LTC) has a pretty solid shot.
We’ve already mentioned how it is much faster and cheaper than Bitcoin (BTC). Moreover, this coin has gotten the chance to mainstream more than the vast majority of cryptocurrency options – and that’s because it is, and has been for a long time, one of the four coins supported by Coinbase.
The fact that this coin is on the biggest exchange in the world means that people are already used to it, they’ve traded it before, and it is frequently written and talked about on the same level as Ripple (XRP) and Ethereum (ETH). It also consistently gets massive trading volumes throughout each day. It was the 4th most traded coin by volume over the last 30 days – more than Ripple and Bitcoin Cash.
How could it not add a coin that is so popular with traders and investors?
I guess maybe PayPal could launch its own cryptocurrency. We will see sometime before the end of the year (most likely).
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.