While being interviewed by TIME magazine, Dan Schuman, the CEO of online payments giant PayPal, spoke about the expansion of the payment processor of its cryptocurrency service. The official said he expects a massive transformation of the e-commerce sector into contextual purchases and personalized experiences driven by different social media networks. BTC could lead this change and transform the whole financial system.
Dan believes that this year is crucial in the acceleration of the trend of digital payments with about three years or even as much as five years maybe. The Covid-19 pandemic has compelled many to use platforms like PayPal and others alike to make purchases every day.
Data revealed by Dan Schuman revealed that about 15.4 billion payments had been made through PayPal last year and are estimated at $939 billion.
In the next ten years, the CEO of PayPal believes that there will be a massive decline in the usage of cash as a form of payment. The decline would, of course, affect credit cards which are a seemingly universal form of payment, including wire transfers and checks.
According to Schuman, he believes that more value can be added to the financial system through digital payments. Mentioning the benefits of BTC and digital currencies, he said: “the advent of these events will cause the central banks to revisit their monetary policies because they cannot keep pumping more paper money into the system when people are not using it, which will give way to digital currencies.”
BTC will Increase Together with “SuperApps”
The CEO of PayPal named the traditional financial system “insufficient” and suggested that modernizing it should be more cost-efficient and inclusive. Averagely, the cost of a transaction is 2.8% which means many make transactions outside it.
CBDC (Central Bank Digital Currencies) could be a means to achieve this feat. For example, a digital U.S. Dollar could help the government set up Fed funding on PayPal. Similarly, citizens of the country can receive their government aid directly to their digital wallets and can also remit their tax with just a simple setup.
In the next decade, BTC could be integrated with 60% of the super apps, which will work as a bridge that’s connecting users with other apps. This will help users control their data and interaction with products and services. Currently, PayPal has introduced crypto checkout for its users in the United States, which would be expanded to its international users.