I don’t want to rehash old news, but there have been rumors and updates about Paypal possibly entering the crypto space by facilitating crypto buys and sells. With this news (although still just a rumor), I started thinking about what it could mean for crypto customers everywhere, but especially in markets and countries where either Paypal or Venmo currently operate.
Here are 3 ways it could change things for all of us:
1. Easy sign up – If Paypal’s crypto product is as straightforward and easy to use as Venmo or traditional Paypal, then it should be a very easy sign up process. Even beyond that, there are already so many active and existing customers, that it could be even easier to get started buying if you already have an account. One criticism/difficulty I have with crypto, and I’m sure many of you would agree, is the difficulty of getting started. Everything from KYC to the complexity of using different exchanges and wallets is already a hurdle for many. If a big fintech like Paypal can make this easier for new customers (similar to how Cash app has for some), then I believe we all can benefit from new crypto enthusiasts.
2. Lower fees – Theoretically more competition could mean lower fees for customers of other companies. If it becomes easier to sign up and use, it will also be easier to shop around for lower fees and better service. Put another way, if there are two stores that both sell food, are both convenient and easy, would you shop at the store that always sells milk for 1 or 2% more? The competition could lead to the stores (or crypto exchanges) to lower fees and continue to innovate to develop a loyal customer base.
3. FOMO – FOMO, or Fear of Missing Out, can sometimes lead to irrational behavior. In this case I’m talking about the institutions and businesses dealing in crypto and bitcoin. If you were a large bank or payment company, do you want to be the last one that refuses to allow easy buying and selling of crypto? If the market continues to grow, we could see even more big companies trying to get a piece of the pie.
No matter which way you look at it, more big players entering the space means more interest, and maybe even accelerating interest, where crypto will become more mainstream and easier for all of us.
Thank you to this great community! And thanks for reading my random musings. Please comment with any thoughts or feedback.
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