Looks like PayPal, the payments processing giant, is definitely not sleeping on the growth of cryptocurrencies and seems to want to make sure to cater to services for the industry as it progresses and matures.
This is certainly interesting news as we’ve seen a general lack of friendliness to Bitcoin and general crypto transactions through their platform in the past.
They might be doing an about face because of the potential stringent competition that the blockchain based payment companies may bring, like UTRUST. Further movements by other competitors like Coinbase implementing a payments processing for crypto and competitors like Metal, and lastly Square, which just recently launched its pilot Bitcoin exchange, may also give Paypal pause.
Or, they might be listening to board members like Wences, the CEO of Xapo, a Bitcoin wallet provider.
Whatever the case may be, they have recently taken what could be considered as a step in a positive direction by filing a crypto-based patent.
We may be witnessing a move by Paypal to lay down foundations and blueprints to enter the crypto market.
According to filings recently submitted by the payments giant, the company is in the planning stages of bringing about a new process to the crypto industry thereby moving payments at a faster pace.
It should be noted that Paypal is not the first traditional company to jump into the digital assets space, the industry has seen companies like the mobile and tech giant, Apple and file patents as well. The space is certainly quickly turning out to be a fast-paced and competitive industry.
Paypal has, in the past, also looked at other methods of getting involved in the industry and filed a patent related to cryptocurrencies but the use of that prior patent has not come to fruition as of yet.
What’s Paypal got planned?
The company is looking to bring a more streamlined experience in the land of crypto for the consumer; if anyone is poised to do so, it might as well be Paypal, they have the resources, access to the experts, technical talent and knowledge in the space to bring about interesting solutions.
Reports state that Paypal “wants to improve user experience and better compete against fiat credit card payments. Right now, its users experience a delay between the start of the transaction and when it is confirmed, with about a 10-minute waiting period being common.
In many transaction situations, a 10-minute wait time will be too long for payers and/or payees, and those payers and/or payees will instead choose to perform the transaction using traditional payment methods rather than virtual currency,” PayPal said in the filing. “Issues like this have slowed the adoption of virtual currencies despite their advantages. Thus, there is a need for an expedited virtual currency transaction system.”
This is an interesting system, as it would allow for the participants in a transaction, (the sender and the receiver), to switch private keys, instead of having their transactions processed through the respective networks (which takes longer and usually has more fees added on). The company states that this would allow for the elimination of the current nuisance of confirmation times.
The questions now are, will Paypal be deploying this new product soon or are they going to be biding their time for now? If the past is any indication of the future, it may point to Paypal biding their time.
The publicly traded payments processing company (PYPL) is currently trading at seventy-nine dollars and is up by a quarter of a percent over the course of the day.