PayPal increases the cost of commissions by favoring transactions with cryptocurrencies

Paypal, the most widely used electronic payment company for online commerce, recently announced a change in its conditions of use that includes among the highlights an increase in the cost of its commissions, leaving a free space to cryptocurrencies to position itself as a best option in terms of alternative payments to traditional media.

These new policies and conditions of use came into effect last week, making some changes in the service. The new conditions and commissions for international transactions would establish a base amount according to the country where the user is located, and ranges from 2.99 and 4.99 dollars, also adding the sum of other tariffs that will also depend on the place where the user is received. transaction.

In the case of Latin America and Spain, the commission is $ 4.99 per transaction, plus the sum of the tariff of 3.4% according to the value of the amount to be transferred. Added to this, a last commission is also added based on the country where the transaction is received and which previously established 5.4% for South America.

Similarly, among the modifications made by the company, it is found that users must have a complete verification of their accounts in relation to the information requested by Paypal, otherwise they will only be able to visualize the available balance and will only have the possibility to withdraw the funds to your affiliated bank account. Although the objective of this is to avoid the use of the payment processor for money laundering and financing of illicit activities, it would limit the use to only one account per person.

The new conditions of use make it difficult to use the platform, especially in countries that maintain a strict exchange control, because they are obliged to comply with exchange rates in the countries in which they operate.

In spite of this, the high costs in the commissions could favor the migration of the users to the use of the cryptocurrencies to carry out their transactions, favoring themselves in the same way in the low commissions that maintain some of them.

Something that should be highlighted in the ecosystem of cryptocurrencies, is that the commission of transactions does not depend at all on the geographical location of the parties that make it, instead, the rate will be established by the speed with which it is required the confirmation of the transaction.

Although Paypal for these moments is one of the most popular payment processors that exist, and above all with a wide acceptance worldwide. In the case of cryptocurrencies we can find exchange houses or decentralized platforms that help us to convert cryptocurrencies into fiat currency, also maintaining much lower commission levels and high levels of security against money laundering, without compromising privacy of the client, nor limit them to the use of a single account.