Global payment systems are feeling the hot breath of Bitcoin down their necks and are scrambling to come up with semi-innovative features to send payments around the world. Paypal, one of the world’s largest online payment providers, announced a new “money request” feature, but has not lowered its quite hefty fees by any means.
Speeding Up Paypal Payments: Without Blockchain Technology
Paypal.me, the new feature launched by Paypal a little while ago, serves as a customizable personal link to request payments from other users on the platform. Doing so should, in theory at least, help people getting paid back a lot faster than is possible now. That statement sounds quite strange, as it has been possible to request money from other Paypal users for many years now.
However, Paypal.me seems to be offering something new, as people requesting funds can simply send their personal link to the recipient via email. Truth be told, whenever someone requests money from another person, that recipient will get an email notification as well. So what is the big deal with this new feature, as it is offering nothing new on the surface?
Well, the Paypal.me feature works across all devices, which includes mobile phones and tablets. Plus, Paypal users requesting funds are supposedly getting money back quicker these way. That being said, this feature is exactly the same as the Money Request feature found in your Paypal Account dashboard, but with a customizable link. Nothing earth shattering to see here folks.
But there seems to be one small difference between the old “Request Funds” method and the new PayPal.me feature. Paypal users can request funds from their funds through the personalized URL, even if the recipient does not have a Paypal account at that time. Using the custom link, they can sign up for an account and complete the payment accordingly.
From an innovation point of view, this feature offers nothing substantial, as PayPal seems to be grasping at straws to delay the inevitability of enabling Bitcoin payments en masse. Despite the company announcing they have begun accepting Bitcoin last year – through their BrainTree subsidiary – there is little to no information to be found regarding the number of virtual currency payments through Paypal so far.
Speeding Up PayPal Payments: With Blockchain Technology
While the new Paypal.me feature has begun rolling out, PayPal officials were quick to announce they are still looking at various ways of implementing blockchain technology. The main purpose of these projects would be to speed up Paypal payments even more, which would be a true source of innovative news for the company.
Even though Paypal relies on traditional payment infrastructures to settle payments between users, the cosmetic side of the platform marks these transactions as “instant”. Sending a credit card transfer to another user can be authorized instantly, yet in effect, funds take a few business days to clear through settlement institutions.
If Paypal wants to take their business to the next level, there is no other choice but to enable Bitcoin payments from the start. Giving users the option to opt-out of Bitcoin acceptance is a better solution than not actively offering it to them at all. Global payments can occur much faster through Bitcoin, at a fraction of the costs. A win-win situation for all parties involved, including Paypal.
What are your thoughts on the new Paypal.me feature? Do you see it as an innovation or just a cosmetic upgrade of a pre-existing function? Let us know in the comments below!
Source: Paypal Corp
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