Biggest Corporations Skeptical of Introducing Crypto Payment Option
Not all conventional businesses are ready to embrace blockchain technology and make payments through blockchain. There is news that is spreading like wildfire because PayPal, which is a famous name in the payment market, has around 325 million active users. The company is selling crypto assets and is also offering custodial services. It is the news that is circulated in the cryptocurrency community for a few days. However, this is found to be a rumor and is not answered by PayPal.
Guy Hirsch, the managing director of eToro, stated that it is suitable for PayPal and other global companies to use cryptocurrency. It is a good sign for them. Above all, it helps people carry out cross-border transactions with ease and without paying a high transaction fee. Moreover, they do not have to convert the currency from one form to another. Many companies are taking the footsteps of Facebook, and PayPal is also evincing interest in cryptocurrency to reduce the hassles due to cross border transactions. This helps to optimize the economy across the globe.
Sidharth Sogani, the founder of Crebaco, stated that the future payments would be carried out with cryptocurrencies, and there would be peer-to-peer settlements. PayPal is the global leader that is reducing the online payment hassles, which is why it can understand the significance of cryptocurrencies.
Not all large companies are ready to embrace the crypto payments. The report that was given by Gartner, which is the most popular research and advisory firm, stated that the bosses of the big companies are careful in stating the usage of cryptocurrencies and whether it can succeed. However, though the cryptocurrency boom is on the rise, no large online retailer is accepting bitcoins. The bitcoins would store the value and has become a critical medium of exchange to carry out commercial exchanges.
The main question that arises is whether blockchain would reduce the fee while transacting. There is no clarity on the accounting and tax part in this instance. Not all merchants are ready to handle the risks due to cryptocurrency exchanges.
The report given by Credit Suisse anticipated that the cryptocurrencies would be challenged to have a good impact on the customer payment system that is already in place. The main problems that arise are due to taxation and solving the dispute and chargeback.
Nick Saponaro, the Chief Information Officer at The Divi Project, stated that there are many innovative solutions required to make the B2B payments and creation of invoices smooth before all the other companies can embrace this. The current tax system present in the US for the cryptocurrency is not advantageous for companies to use the digital currency. The capital gains may not be required by you to pay when you pay through the traditional currency while shopping in the stores. However, this is not the case with bitcoin.
The enticing part about cryptocurrency is a secure, safe way to perform transactions. More importantly, you do not have to pay a considerable transaction fee. Gil Hildebrand, who is the CEO, stated that the internet has made it easier for people to connect. There are no middlemen involved in doing the transactions. This makes it simple and easier for everyone to perform transactions. On the flip side, many companies accept cryptocurrency as payment and allow them even to pay the phone bill using bitcoins and taxes. The Bitpay, which is a bitcoin payment acquiring processor, stated that there is a massive demand for the crypto payment services. The transactions have increased from 7.2% to 9.1%. Few companies accept bitcoins as an alternative currency to buy game tickets and electronics, especially Newegg, which has retail shops in 72 countries.