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PayPal is a leading and one of the world’s largest online payment platforms. It has over 429 million active users and multiple local payment methods. Its digital payment solution providing system has proven to be a crucial part of every e-commerce business for many years.
Ripple is a blockchain network which was designed to serve the needs of the financial services industry. They enable the users to fast digital payments, with low charges and to deliver cross border transactions. XRP, is a digital token made to work on the Ripple network.
Will Ripple poses a huge threat to PayPal, but still there is some safe space left. Will it be a struggling time for PayPal to maintain its position of International e-commerce payments?
Plus Point PayPal Poses
PayPal has always been ahead in innovation. At June 30,2022, revenue was marked at a whopping $6.8 billion which is approx 9.11% of growth year-by-year. The organisaation is continuously hitting hard to grow its position to establish itself as the market leader in the digital payment ecosystem that links merchants and consumers.
The payment system benefits from strong economies of scale. It has a total 35 million active merchant accounts, and it has gross over trillions in volume of transactions.
What Ripple Rocks In?
In comparison to PayPal, as it is somewhat like the same way the traditional banks work. You have to pay a charge for instant transfer or wait for some days.
Ripple is a Blockchain network that has designed a payment protocol to enable international money transfers. It gives advantage of low transaction fees and also processing time taken is extremely fast. Rather than hoarding a lot of cash as reserve, RippleNet holds a global reserve of XRP-based liquidity which can be transferred anytime at any moment worldwide.
Many International banks are integrated with RippleNet. The average transaction takes merely a matter of seconds. RippleNet payments are actually instantaneous and free.
Through a practical aspect, RippleNet can disrupt the worldwide cash-transaction system and become an economic and faster option. It could mean bad for PayPal.
Can We Term Ripple as Winner?
Considering the strengths of RippleNet by all dimensions, PayPal is also not weak in collaborating with international banks to serve globally.
Since, the U.S Securities and Exchange Commision (SEC) started a lawsuit against Ripple in early 2020. Due to this, many American banks and exchanges have denied to commence any deal with the digital service. The legal noose has been hanging on its neck for two years.
The XRP token is neither useful nor valuable to American investors until this conflict is sorted down. It could take a long time to resolve the SEC dispute. But, obviously Ripple can become the next PayPal. In the short term, the reign of PayPal continues.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
