Where Might PayPal Spread Facebook’s New Cryptocurrency?

Tuesday September 3, 2019

Facebook recently announced that its own version of Bitcoin, called Libra, will be launched in 2020. Libra is reportedly designed to be more stable than its predecessors, and has been backed by various reputable companies including PayPal. This specific partnership has led many to surmise that there is a possibility for PayPal to push Libra spending opportunities more quickly than they would have otherwise come about.

With that in mind here are four entities that currently accept PayPal and may represent significant opportunities for Libra to be used as a form of currency in the near future.

Online Retailers

PayPal is currently one of the most popular forms of payment for a wide range of internet retailers. Online stores that accept PayPal include Ebay, Zulily, and Google Play, to name a few.

PayPal’s online popularity stems largely from the simple fact that people feel secure when using it. With the help of the payment processor, shoppers don’t have to give their credit card details to numerous websites, which reduces their risk of having their personal and financial information stolen.

It seems inevitable that Libra will follow in PayPal’s footsteps in this regard. In fact, if Libra can be developed in a way that makes it simpler to use than other cryptos, users may even prefer it; it might be as easy and protective as PayPal, with even more inherent security.

Brick-and-Mortar Shops

PayPal users are now able to spend their hard-earned cash at physical stores as well. Specifically, customers can use PayPal-issued cards to purchase items at these brick-and-mortar shops. Those who own Android phones also have the option of using an NFC-based payment, at least with merchants who possess compatible card readers and point-of-sale systems.

It is likely that Libra will also be an acceptable form a payment in actual shops. Perhaps users will even be able to link their Libra accounts to Apple Pay or Apple Pay Cash to make things more convenient for iPhone users. Or perhaps PayPal cards will be able to tap into Libra balances for in-store use. Either way, it’s likely that in time consumers will be able to buy things, physically, with Libra.

Online Casinos

While we’d still say that credit cards are the primary means of payment at most online gambling platforms, payment processors have become very prominent as well. PayPal-driven gambling sites in Australia, in the United Kingdom, and in Canada are particularly prominent, and sometimes represent the very best casino activity, on both the gaming and sports betting fronts. PayPal’s system is extremely convenient for making deposits and cashouts, particularly given that they don’t require personal information be re-entered, and they allow for near-instant processing.

It would come as no surprise if Libra also entered this lucrative business. Not only is PayPal already established at most of the top sites, but other cryptocurrencies have started to emerge as options also.

Landlords

Landlords can collect payments through PayPal, though like the online merchants who deal with the processor most frequently, they can be charged fees for doing so. But it’s already been suggested that cryptocurrency can do away with fees like these when used in real estate deals, so there seems to be an opening for Libra in this space as well.

In fact, it was hinted in Facebook’s documentation that people will be able to pay their rent with the new global currency. “Success will mean that a person working abroad has a fast and simple way to send money to family back home, and a college student can pay their rent as easily as they can buy a coffee,” read the document.

It’s not a direct promise of real estate involvement, but that subtle mention does speak to Libra’s potential in this potentially significant crypto space.