Even if PayPal is still the first choice in consumer’s preferences for online payments, Bitcoin offers several advantages that could eventually allow the cryptocurrency to establish dominance.
- In terms of security, Bitcoin comes as strong as the established online payments platform, PayPal. They’re both striving to strike the balance between accessibility and confidentiality.
- When it comes to ease of use, PayPal offers a trusted, universal user interface, eliminating the decision friction created by the multiple options of Bitcoin wallets available. PayPal even has a peer-to-peer system of transactions called PayPal.me which is similar to a cryptocurrency wallet, although you should confirm your identity before being able to use it.
- Regarding their stability, Bitcoin presents a higher price volatility which makes some customers hesitant to trade their cash for a cryptocurrency that fluctuates largely in value. Where PayPal, relying on fiat currency, guarantees constant rates during transactions.
- As online merchants, both payment systems have made considerable progress in integration. PayPal has offered in-house options for payment processing, while Bitcoins had the support of various startups that created platforms and developer kits for a seamless implementation on the merchant’s website.
- Their reputation, one reason PayPal have seen wider adoption is that it hasn’t really been heavily linked to illegal dealings the way Bitcoin did with Silk Road or, recently closed, AlphaBay. Cryptocurrency has to prove its legitimacy and security, but it is slowly consolidating its way up.
At this time, Bitcoin ($73.27 B) overtakes PayPal ($70.77 B) in market value, but we can, but it’s too early to tell whether if it can really overtake the platform’s place in mainstream adoption.