Merchants Are Not Interested in Crypto Because Of Volatility, Said PayPal CFOMay 22, 2018
Mr. John Rainey, CFO of PayPal, one the most popular payment mode today, said in a discussion with CNBC that the company does not see much attention in virtual currencies due to the instability of price that threatens the feasibility of their merchant’s businesses.
PayPal, a centralized payment service provider was one of the first companies that accept virtual currencies. Merchants and traders could opt-in to accept BTC or Bitcoin on the platform way back in the year 2014, when the value of Bitcoin was about USD400. At this point in time, John stated that the company does not see much interest in virtual coins from their trade, as the unstable characteristic of digital currencies can lead to contingent losses.
According to John Rainey, if you are a trader and you have, like for instance ten percent margin on an item which you offer and you accept BTC, for instance, and the following day it moves fifteen percent, now you are underwater on which transaction….You can have something which appeals to clients. On the other hand, if traders or merchants do not accept it, it is of little value. At the moment, John does not see a lot of attention and interest from their merchants.
However, if it something which stabilizes in the near future, and is a good currency, then we will surely support that, John Rainey added.
The last statement John made supports the company’s patent filed last March that aims to get the transaction time of virtual currency faster and quicker. If the system can be applied at a huge commercial scale, it could enable crypto payments to be processed between the buyers and sellers without ado and off chain, it also get rid of huge transaction charges. What is more, it will also eliminate long verification time. In short, payment process will take place in just a matter of seconds.
PayPal that was established in the year 1998, has 237 million registered active accounts with a payment amounts of USD132 billion in January to April this year, up more than USD30 billion since the first months of 2017.
Jack Dorsey Square Chief Executive Office today expressed optimism towards virtual coin adoption on a worldwide scale. In a meeting, Jack Dorsey shared his vision that virtual currencies are the future of an authorized ways of payment that reaffirms his past statements that BTC will become the “single currency” in the near future.