On the 2nd of October, Alex Svanevik, the CEO of Nansei, pointed out that crypto has not solved payments yet, with AMeX and PayPal leading the payment platforms worldwide.
crypto hasn’t even solved payments yet pic.twitter.com/MSOqNUGBko
— Alex Svanevik 🐧 (@ASvanevik) October 2, 2022
You could exchange valuable items using payment systems like PayPal long before cryptocurrency came into being. The distinction between using a system and another is that PayPal requires payments to be made through centralized networks such as banks.
Generally, cryptocurrencies were incorporated to solve problems associated with this centralization, with payments being part of them.
These payment mediums require users to authenticate their personal information before proceeding with transactions. The requirements for personal data put users and their funds at risk of hackers.
While both payment methods allow for international digital transactions, some, like PayPal, are not accessible in all nations. These centralized systems’ transaction fees are higher than the crypto platform’s, including those for AMeX. As a result of the exorbitant costs, many businesses have gone as far as to refuse AMeX cards.
On Twitter, the CEO of Binance, CZ_Binance, responded to Alex Svanevik’s tweet by stating that the dominance of payment mediums will alter in a few years. Aside from several Twitter users who concur with that statement, all crypto enthusiasts undoubtedly share that sentiment.
Decentralized blockchains offer a lot more than platforms such as AMeX and PayPal. Due to the absence of intermediaries, transaction costs are reduced. With cryptocurrencies, the time it takes for both parties to exchange an amount is reduced to minutes. Since intermediaries are not required to complete the deals, it is granted more freedom.
The ability to register and store information, track money, and increase security and transparency in transactions are all advantages for users who trade value using Bitcoins and several other crypto platforms.
With these benefits, advancing technology, and rising crypto acceptance, it makes sense that these platforms will dominate in the coming years.
