Crypto Corps About To Start Cashing In
It hasn't been long that platforms such as Paypal and Venmo started to accept crypto payments. These platforms for the most part did so at a normal fee as they used with their over services. Often times $0.50 fee or a fee of 2.3%.
With crypto transactions we already know that a vast majority of them are pennies or fractions of pennies unless you are dealing with Ethereum and Bitcoin. Besides that the fees across the board are relatively low.
To me it ALWAYS makes more sense doing crypto transactions from your own or secondary wallet and never in the case of these third party platforms. I understand they make things easier but you're going to now be paying higher fees for these transactions. Let's take a look at the changes coming to Paypal and Venmo.
The big change here is the minimum flat fee for smaller transactions.
Yep keyword there is MINIMUM!
$0.49 for $5 or less transactions
$0.99 for $5.01 - $25
$1.99 for $25.01 - $75
$2.49 for $75.01 - $200
After that $200 mark it will remain at 1.8% up to $1000
and
$1000.01+ 1.5%
These are still sizable chunks as we know large transactions are what make crypto so awesome with their low fees.
Examples of Fees
For example if you made a $1000 transaction via Ethereum you'd pay about $6 - $8 at the moment. Do it with Paypal or Venmo and you'll be paying $18. $10 to paypal/venmo for a single transaction. Now put that towards an even larger transaction of $5,000 this is where Paypal and Venmo start to rob you blind! That same trasaction would still cost you about $6-$8 on Ethereum but use Paypal or venmo and you'll be paying a massive $75 fee or roughly $70 of that going to paypal/venmo.
Will People Pay?
The question is will people pay these massive fees for ease of use?
Sadly I think so but it also shows crypto that offering up better UI features and lower fees there is still massive room for potential for these companies. I'd honestly even recommend LeoFinance start building some of these types of front ends for transactions of their own tokens to various places and collecting the fees. Hive is starting to get there through diesel pools but there is still massive potential there.
The Future
Liquidity along with easy of use and some much easier and beautiful UI's need to start happening. These three combo is what will skyrocket a company into the next era I believe. Right now the onboarding of many of these crypto systems is horrible, clunky and confusing. It's like taking web3 tech and shoving it into web1.0 take note I didn't say web 2.0! These UIs honestly remind me of the initial start of the web and don't account for UI design and ease of use which I personally feel is a fundamental flaw of hive and many other blockchains at the moment which should be address asap.
What made and makes Splinterlands so successful? EASY ONBOARDING, Easy use cases, easy to make transactions. We see that a vast majority of people don't care if you take a 1% fee for transactions as long as you're providing a clean, fast and effective UI for them to use it's worth it to many to sacrifice that 1%.