Earlier this week, PayPal announced new fees and restrictions today that could have a huge impact on the cryptocurrency space. While cryptocurrencies offer low-fee and even feeless forms of value transfer, PayPal dwarfs the competition with global adoption and brand awareness, used to transfer business and personal funds as well as handling all eBay transactions.
However, all of that may be about to change. PayPal’s new policies came into effect today, including a $4.99 fee for US users sending international payments, plus an additional 2.9% charge if the transaction is partially filled with a debit or credit card, and a flat rate based on the currency used. With similar measures implemented for users in other countries as well, the fees are staggering, and make international microtransactions completely unviable.