Crypto Vs. Visa/Mastercard/PayPal – Are Bitcoin (BTC), XRP More Viable Options?
For quite a while now, Bitcoin and all digital assets are struggling to overtake traditional payment rails such as Visa, Mastercard, and PayPal.
Ripple’s XRP, for instance, has been gaining more mass adoption and Ripple’s xRapid which uses XRP has already managed to overcome SWIFT with much faster, safer transactions and also cheaper fees.
Also, some banks have already ditched the traditional payment system which reportedly became outdated in order to use Ripple’s services.
BTC, the perfect substitute for traditional payment processors
Anyway, during a recent interview, Shapeshift’s Erik Vorhees said that BTC is not like centralized digital money and instead, it’s free to use, accessible, borderless and also uncensorable.
He said that all these features make digital assets the perfect substitute to fiat.
More than that, BTC has also started to be used as a store of value, an alternative to gold.
Now, as Ethereumworldnews reports, BTC has also the potential as a medium of exchange as well, according to BlockData.
The online publication mentioned above says that BlockData’s team says that traditional merchant payment processors such as Visa and Mastercard pale in front of BTC, XRP and more digital assets that have come with this wave of innovation.
The analytics company also estimated that merchants would see their margins boosted by 4% if they accepted crypto instead of fiat on debit and credit cards.
Visa, Mastercard and PayPal won't exist in 10 years from now.
Why? Because they are way too expensive and blockchain currencies have outpaced them by a mile.
— Crypto Michaël (@CryptoMichNL) April 17, 2019
Ethereumworldnews says that “an $1,000 purchase through Visa dwindles to $944.20 after all is done and dusted. The financial services firm charges $25.10 as an interchange fee, an intermediary payment processor, PayPal in this case, takes $29.30, and at last, $1.40 is taken as an “assessment fee.” And with that, the end online merchant receives only $944.20 from the $1,000 transaction.”
Earlier this week, Bitcoin processed $7 billion onchain in a single day.
Venmo did $62 billion in volume in 2018.
That means Bitcoin did more than 11% of Venmo’s annual volume in a single day.
Bitcoin is the killer app.
— Pomp 🌪 (@APompliano) April 17, 2019
They also say that it’s the very same thing, even a bit worse, with Mastercard.
We recommend that you head over to their original article and check out more data.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.