Paypal: CEO sees mass adaptation of Bitcoin and Co.
Paypal boss Dan Schulman gave the first interview since the decision to integrate crypto currencies at the Web Summit. The occasion was the online conference Web Summit, the questions were asked by the New York Times columnist Andrew Ross-Sorkin.
Word has spread that Paypal is opening its doors for Bitcoin and other crypto currencies. Initially, only US customers of the payment provider will benefit from this, but next year the service is to be offered Bitcoin Storm in markets in other countries as well.
But Paypal CEO Daniel Schulman’s vision seems to go even further. He has hinted that Paypal could well enter into competition with existing crypto exchanges. According to Schulman, the demand in the USA has been overwhelming already in the first days. Despite all the euphoria, however, there are also points of criticism that are connected with Paypal’s market power. Crypto start-ups are likely to have a hard time in the future when Paypal already has 346 million registered users.
Now Paypal boss Dan Schulman has given the first interview since the decision to integrate crypto currencies. The occasion was the online conference Web Summit, the questions were asked by Andrew Ross-Sorkin, columnist of the New York Times.
What was the catalyst for this integration in the first place? Schulman answers as follows:
We wanted to offer our customers the option of buying crypto currencies in the PayPal wallet because we had conducted market research and about 54 percent of our clientele wanted this option. What we did not initially plan was to offer the possibility of using crypto-currencies directly to buy from one of our 28 million merchants. But we made this possible in order to offer crypto both as an investment and as a means of payment.
Are volatile rates a problem for Paypal merchants?
Ross-Sorkin argued that many people have concerns about using crypto currencies because the exchange rate is so volatile. Schulman admitted that he could well understand this. Especially for smaller merchants on Paypal, the profit margins are sometimes small and can even be completely wiped out by fluctuating prices. However, the exchange rate is always transparent and known to both parties at the moment of purchase. The risk of volatility is therefore not as high as initially thought.
Paypal boss Schulman is sure that crypto currencies will become an everyday means of payment. In his opinion, the global pandemic has greatly accelerated the trend. Schulman sees the future in a financial system that is faster, cheaper and more efficient than the traditional one. He sees financial inclusion as desirable in order to give people worldwide access to the world of finance.