PayPal Could Go Down Like Nokia Did If It Doesn’t Adapt to Blockchain Tech

PayPal, the global online payments and money transfer system, has begun investing in blockchain technology. But according to their chief financial officer John Rainey, the firm is hesitant about getting involved in the cryptocurrency sector.

Speaking in an interview with Yahoo Finance on May 7, Rainey pointed out that PayPal briefly allowed their merchants to accept Bitcoin (BTC) as a form of payment, but that feature was shut down due to the currency’s instability and volatility.

Adding to this, Rainey said:

“We have teams clearly working on blockchain and cryptocurrency as well, and we want to participate in that in whatever form it takes in the future. I just think it’s a little early on right now.”

PayPal Is Not Focused on Blockchain and Crypto

Rainey stated that currently PayPal is focused on other areas of growth rather than trying to incorporate a cryptocurrency payment system. He then revealed that PayPal made a $500 million investment with Uber, because the two companies are planning to build a payments platform together.

He also added that PayPal made a deal with Instagram, that they would be a payment provider for people shopping on the popular social media platform.

Moreover, as if these deals and partnerships weren’t enough, the global payments giant remains on the hunt for other major acquisitions.

Final Thoughts

Although PayPal was previously focused on the research and development of blockchain technology, as they filed a variety of cryptocurrency and blockchain-related patents, it appears the company is taking a different approach in 2019.

If PayPal fails to acknowledge the potential of cryptocurrency and blockchain technology, or to allocate the time and resources to develop and implement their own solutions, they could quickly fall behind with outdated payment technology.

After all, the cryptocurrency industry moves extremely fast, and new products and payment developments are being developed at this moment that could very likely surpass PayPal.

Will cryptocurrencies ever make PayPal obsolete? Or will the global payments provider quickly adapt when the time comes? Let us know what you think in the comment section below.

5 Comments

  • Justme
    Posted May 11, 2019 2:00 am 0Likes

    Check Utrust… just recieved their license and will launch any moment.
    This is the paypal of crypto !

  • Joe
    Posted May 11, 2019 2:17 am 0Likes

    HAHAHAHAH!!!!!!! Dumbest article ever!!! PayPal is so far beyond crypto – they’re playing chess while crypto dorks are playing checkers

  • Crypto
    Posted May 11, 2019 2:21 am 0Likes

    UTRUST had their license approved today, that’s what will bring PayPal down. Crypto is the future of payments

  • Nipsey Hussle
    Posted May 11, 2019 1:54 pm 0Likes

    The fact that Paypal say’s they are investing in blockchain technology but hesistant about getting involved in cryptocurrencies sector while JP morgan and Facebook are getting involved…shows a clear lack of understanding of future threats to their company and should signal their investors to question the future direction of this company.

  • Cameron
    Posted May 12, 2019 1:29 am 0Likes

    I hope PayPal does drag their feet and lose their grip on payment channels. Fees are outrageous. UTRUST is and will be the ones to take them down.

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