The world of finance has been in a state of flux for quite some time now and it’s only a matter of time until everyday consumers start to realise everything in this sector is being rehashed. For instance take a look at the most “valuable brands”; both Nokia and Pizza Hut have been dethroned by Lego and Paypal! Something just isn’t adding up; but the question is whether or not people want to see what is actually going on in front of their own eyes?
Make sure to read: Traditional Financial Markets Are as Volatile as The Bitcoin Price
Paypal is an Overvalued Brand
There are some clear benefits to the service Paypal has been offering for many years now. Using convenient methods, such as bank accounts and credit or debit cards, to send money worldwide seems to be a favourable solution for most everyday consumers. Even though Paypal has a verification process of its own, it usually takes less than 48 hours to get your payment method verified.
Sending money around the world is pretty convenient as well, as all you need is a recipient’s email address – hopefully the one linked to their existing Paypal account – and the money is sent immediately. Or so it appears, as Paypal is simply changing the balance sheets on their backend, as taking out money still takes place through their bank accounts.
For what it’s worth, most of us have to still use Paypal as a way to pay for goods on the internet. However, that doesn’t mean the world couldn’t do without Paypal or its outrageous fees, as the payment method is not the only viable solution to sending money around the world. In fact, there are many alternatives available and some at a fraction of the cost.
So what is it that makes Paypal so much more valuable all of a sudden? Truth be told, Paypal, along with Lego and a handful of other companies, was a new entrant on the list of “Best Global Brands” for 2015. According to this report, a brand’s value is assessed by looking at its financial health and performance, combined with the role in purchasing decisions and how loyal its customers are.
Based on those criteria, it comes as no surprise to see Paypal taking a commanding lead over other brands, as they are in the business of financial performances and play a major role when it comes to purchasing. Being one of the world’s leading online payment processors does come with certain perks, albeit they are cheating in the rankings in a way.
Furthermore, due to Paypal’s nature, it only makes sense they are generating 30% of revenue outside of their home region of the United States. Last but not least, it’s not hard to imagine the profits generated by this company, as they have brought little to innovation of their business model to the table in recent years, while still raking in 2.5% fees for every transaction.
Despite all of the convenience offered by the platform, there is little benefit for users to use Paypal. Accounts can still be frozen at random, with funds being inaccessible for a period of up to 180 days or more. Additionally, Paypal has been shutting down their services in various countries over the past few months, making it far less of a “global” brand than people would like you to think.
Bitcoin is a Truly Global Payment Solution and a Valuable Brand
Regardless of how you want to look at things, Bitcoin is turning into a brand of its own right. Despite all of the negative media association in recent years, this disruptive digital currency has become synonymous with global finance and sending money around the world at a fraction of the cost.
But Bitcoin is facing an uphill battle as well, as global adoption is increasing very slowly right now. Despite launching at the right time – when the latest financial crisis swept the world – everyday consumers remain oblivious to these alternative financial options. Most of this can be attributed to uneducated media reporting on Bitcoin while having no clue about how it works, what it does, or why it was conceived in the first place.
Source: Telegraph UK
Images courtesy of Paypal, Shutterstock