Review/suggestions: PayPal Cryptocurrency

[Jeffrey2002]

I love that you added Crypto. I used it for about ~25k buy and sell transactions in the last two weeks with probably ~50 total trades. It was quick and responsive. Being free until 2021 made it a pleasant diversion for me for no cost to try out. Compared to other websites like Coin base, it was very light on features. It will also be costly in 2021 compared to established exchanges like KRAKEN and Binance.us-- 0.25% fees or less than Paypal 2% is a little too pricey to make it more than a novelty for the occasional purchase. 

It is an acceptable little option, purely a wallet to store and transact under ~$2,000 in Crypto. But it does raise the question of who does this service targets? Sure it is a nifty little wallet feature, but to what purpose? The fees are too high to consider for regular use. Why pay in crypto when it is a 2% fee to buy and sell it? Also, the prices are the same for BTC, ETH, BCH, and LTC. That makes no sense considering the thousands of percent disparity between the max costs BTC and the low-cost LTC to trade directly. 

My recommendation is to add additional options to make the service useful for more than novelty sake—a subscription service for lower trade costs or even free trades up to a certain amount per month. Say $25 for 50 transactions per month, buying and selling up to 20k total weekly value. Or you could require individuals to deposit money with you, and they get unlimited (up to some number per month) trades, but when cash withdraws, a 2% withdrawal fee is paid. If they deposit $5000 into the CRYPTO trading account, it can sit there forever. Either as USD value or as a coin. But when they decide to remove it from the CRYPTO account and send it back to Paypal Wallet, a 2% fee is charged. Of course, that requires the PAYPAL crypto wallet to be separate from Paypal Wallet. But honestly, that is a good thing. 

Or come up with your ideas. The bottom line is your 2% transaction fee makes your crypto service a novelty. Find other ways to monetize it that won't penalize the people who are most likely to adopt it as a standard payment method or savings method. Everyone knows the best way to invest with Crypto is to buy once a month and hold it long term. So why not give a free BUY order for those who set up *AUTOPAY* once a month and one free sell order a month for those who use *AUTOPAY* for at least one year. At an absolute minimum, that would at least make it a viable savings vehicle for funds. 

Anyway. It was fun. It was VERY responsive to buy and sell. It reflected current market prices better than the top 3 exchanges I compared to while testing it under HIGH transaction volume. The all-time high and runups were major stress events; I bought and sold during both MAJOR stress events with no issues and FAR faster than on Binance.us and Kraken, two established systems in the Crypto space. You have a sound system; you need to make it viable for the long term and regular users. 

TLDR: It needs a new monetization model that reflects the variety of users who may be interested. That is also at least remotely competitive with other options that do the same thing for 1/10th of the fees. As it stands now, the intended fee structure is not suitable for long term or short term, high volume or low volume, regular use, or occasional. Make it more than a novelty.