For the first time ever, PayPal has adopted an active stance to the rise in popularity of virtual currency, specifically, the growing use of the new digital asset known as “bitcoin.” While the move may seem strange, it is important for PayPal to understand that they are dealing with a digital currency that is completely separate from their traditional “banking” systems.
Payment providers need to be able to process payments quickly in order to remain afloat. They also need to be aware of the rising trend in the use of this new virtual asset in the payments system. As such, PayPal has taken a positive step in terms of its stance on this type of payment, especially when compared to the previous stance it took in regards to the banking system.
The main reason PayPal is taking a stand on this type of digital currency is because they are concerned about the security of their financial transaction processing system. Because this new type of payment is not backed up by physical money, it poses a risk to the payment provider.
This means that the payment provider’s risk level in handling this new type of transaction is increased, which means that their financial transaction processing costs will go up. If the amount of this new asset is still in its early days, the costs will stay the same, but if this new asset is widely accepted it could increase the cost to PayPal. For their part, PayPal wants to be able to offer the most competitive rates possible in order to retain their market share and retain the trust of their customers.
Even though this is a step forward in terms of the security of their payment system, it is important for the payment provider to take a look at the potential problems that could come from this new form of payment. Since this new asset is not backed up by real money, it poses a risk for the payment provider and their financial transaction processing system.
As a result of this, the payment provider should take the necessary steps to educate themselves on this new form of transaction and how it might affect their system. This new digital asset is rapidly increasing in popularity and it is vital that the payment provider keeps up to date with its changing value and acceptance.