Paypal is down as more people use USDT Crypto

Paypal, the world’s leading payment service provider, is in decline as people turn to the faster, cheaper stablecoin USDT. Although Paypal has adapted by creating PYUSD, it has barely seen any usage.

Paypal is in serious decline

PayPal’s decline or decline in users in some markets could be due to a number of factors that have affected its popularity and user trust, especially among consumers and online businesses. Here are some of the main reasons why PayPal is not as popular as it used to be:

1. High fees compared to competitors
   PayPal has relatively high transaction fees, especially for online merchants (around 4.4% + fixed fee) compared to competitors like Stripe, Xendit, and the ones that have grown exponentially that have caused PayPal to fall the most are cryptocurrencies USDT and USDC that have lower fees, almost 0, or have a more transparent fee structure where anyone can check the transaction.
   For international money transfers, PayPal’s fees and exchange rates are often not worth it, both in terms of the service from the agents that many users often see as bad for merchants and some merchants do not receive their money completely from PayPal. When compared to USDT and USDC, it is clear that there is a big difference. Finance in a decentralized world seems to be the most needed by humanity.
   
2. Account suspension without explanation
   Many users have had their funds “held”, “account locked” or “prohibited” by PayPal without any notice or clear reason.
   Creating distrust among freelancers, online merchants
   
3. Not suitable for new markets – DeFi / Web3 / Crypto
   PayPal is not really usable in the crypto, NFT, or DeFi world (even though PYUSD was released, it was not interested because of its poor reputation, which made most people distrust the PYUSD coin created by PayPal).
   While the younger generation turned to Metamask, Binance Pay, or other wallets that can transfer money worldwide without a middleman.
   
4. Easier emerging competitors
   Stripe, Revolut, Alipay, PromptPay QR, ShopeePay, etc. – New systems that meet the needs of developing countries
   Crypto payments (USDT, BTC, BUSD, etc.) that are instantly transferable and decentralized
   
5. There is no cohesive ecosystem
   Line Pay / WeChat Pay / Apple Pay are tied to their own ecosystems such as social, mobile, hardware.
   Crypto wallet / Hardware wallet that connects to the decentralized financial world on almost every web3 platform
   PayPal is not tied to any platform or hardware ecosystem, so customers do not have high loyalty.
   
6. Brand image “old” and slow to adapt
   PayPal is starting to be seen as an “old school” company that grew during eBay and the early days of e-commerce
   It doesn’t have the UI/UX changes or fresh systems like its competitors
   It can’t compete with the new fintechs that are coming fast and catering to specific groups like freelancers, content creators, digital nomads
   Poor service from Paypal employees as mentioned online
   Unexplained account suspensions to freeze business funds on PayPal have caused many businesses using PayPal to go bankrupt.

Paypal Short Summary

Paypal Problems	Paypal impacts
Expensive fees	People move to cheaper alternatives
Accounts are easily banned	Users are afraid to keep their money.
Not supported crypto/web3	Losing new customer base
Outdated UX	People are turning to crypto AVC, USDT, USDC, etc.
No ecosystem tie	Disloyal customers
Non-transparent operations	People abandon

What is Paypal?

PayPal is an online payment platform that acts as an intermediary between buyers and sellers to transfer money via the internet conveniently and securely without the need for credit card numbers or bank accounts directly.

PayPal’s main functions

Accept payments for online merchants, transfer money between people (P2P transfer), link to credit/debit cards or bank accounts, prevent fraud with verification and dispute resolution, make international payments in multiple currencies.

Who owns PayPal?

• Formerly owned by eBay (since 2002)
• Currently listed on NASDAQ under the symbol PYPL

Disadvantages of PayPal

• High fees, especially for international transactions
• Possibility of automatic account lock if the system suspects fraud
• No independent crypto support (even with PYUSD)

Who is the founder create Paypal?

PayPal was founded by a group of famous businessmen and technologists, and the company began with the merger of two companies in 2000.

List of the main founders of PayPal

• Max Levchin Ukrainian engineer Co-founder of Confinity, a security software company
• Peter Thiel Investor and strategist (later founded Palantir and was an investor in Facebook) Co-founded Confinity with Levchin
• Elon Musk Founder of X.com, an online financial company After merging with Confinity, it became PayPal in 2000 Currently CEO of Tesla, SpaceX, X (Twitter), xAI, etc.
• Luke Nosek, Ken Howery, Yu Pan Members of the “PayPal Mafia” group who later went on to create companies such as LinkedIn, Yelp, YouTube, Palantir

What does the future hold for PayPal?

PayPal’s future is at its biggest “turning point” since its inception, with two main trends to be identified.

Areas that still have a “chance to grow” (if they can adapt quickly)

PYUSD and the crypto world
If PayPal allows unlimited use of PYUSD (on-chain), use in DeFi, connect wallets like Metamask — it will be able to compete with USDT/BUSD again. There is an opportunity to be a bridge between “ordinary people” and “crypto world” because it has a huge user base.

Cross-border strategy and AI
PayPal is trying to expand to developing markets such as India, Latin America. Use AI to detect fraud, analyze customer behavior in real time, reduce risk / increase the accuracy of account bans. Start investing in superapp technology that connects bill payments, loans, and centralized investments.

Paypal Declining” side

Customer base being stolen by new competitors
Stripe, Apple Pay, Google Pay, Crypto Wallet, etc. are growing fast, easier to use Especially in developing countries, people are switching to USDT, USDC, Crypto, PromptPay, WeChat Pay. Outdated image and closed system
PayPal still operates as a “closed” system, is not transparent, and KYC is unnecessarily strict. Contrary to the trend of “Web3” and the new financial world that emphasizes freedom, transparency, and no middleman. Revenue growth slows down
Revenue from transaction fees is starting to stabilize “Declining” side PayPal (PYPL) shares continue to fall in 2023–2024 The market sees it as “difficult to grow in the future” if it does not revolutionize itself.

Paypal Summary Compared to USDT

Key Points	Paypal	USDT Tether
Type	Payment Gateway Controls Owner’s Money	Stablecoin on blockchain (Crypto/Digital Dollar) Decentralized, the owner of the money is the real owner of the asset.
Usage	Transfer money, pay bills, make payments in online stores	Transfer money, trade, use in DeFi/Web3, pay crypto
Fees	High (3–5%) especially overseas	Very low (0.1–0.5%) or almost none
Transfer speed	1–3 days (international), sometimes longer	A few seconds to a few minutes (Real-time)
Ownership	There controlling the money in the account	The USDT holder controls 100% (Non-custodian
Risk of account lockout	Very high if violate policy or will be closed without reason	Almost none (unless exchange blocks)
Current status	Declining, more people are dropping	Highest usage and transfers in Stablecoin
Re-adapt	Issued PYUSD but no one is interested	Dominating the Stablecoin market both on and off Exchange

USDT wins in many areas: speed, cost, low fees, and financial independence without regulation. PayPal also has an advantage in banking integration, buyer protection, and global user familiarity, although it continues to decline.

Reference : Verster Community

Join our gang by purchasing the Animalverse Club NFT, which is the key to accessing a ton of benefits.
Animalverse SoicialFi is a web3 social media platform designed to connect users around the world without the influence of algorithms, promoting equal access to information. The platform aims to create a decentralized environment where users can freely share and consume content and send crypto, which is fully consistent with the principles of blockchain technology. Let’s be a part of AVC ecosystem  Home  BlackMarketplace  Groups  Games  Jobs Financial Blog News