PayPal’s aggressive move to launch a stablecoin is likely to inspire its competitors in the financial industry to follow suit.
With the passage of The Clarity for Payments Stablecoin Act by the House Financial Committee, the ecosystem for stablecoins will likely undergo a sea change. On Monday, PayPal made a startling announcement regarding the launch of its very own stablecoin.
Considering the numerous use cases for stablecoins, this is likely to have a cascading effect on financial institutions and payment processors. In February 2019. JPM Coin, a stablecoin issued by the Wall Street financial giant JP Morgan, has been introduced to enhance wholesale payment operations.
In this context, PayPal’s aggressive move to introduce a stablecoin may prompt its competitors in the financial and payments industries to investigate the crypto market further.
Despite the regulatory uncertainty surrounding the use of cryptocurrencies in the United States, this could be a positive indicator for adopting cryptocurrencies, particularly in the payments sector. These are the five PayPal competitors that may introduce their own cryptocurrency or stablecoin:
In its partnership with Elon Musk’s X platform, Stripe has already worked on integrating cryptocurrencies. CoinGape announced that the company had been designated X’s official settlement payment processor. Intriguingly, Stripe already operates a fiat-to-cryptocurrency onramp service.
Amazon Payments
Amazon is rumored to have experimented with a Central Bank Digital Currency (CBDC) based in Europe. This could indicate that the company intends to launch crypto payments with e-commerce integration.
Venmo
On Monday, it was announced that PayPal USD will be accessible via Venmo. This leaves room for additional crypto applications with the mobile payment service.
The Apple Pay
The payment platform has implemented several crypto linkage features, such as “tap-to-pay.” The iPhone manufacturer has the advantage of being able to manufacture hardware and could conceivably launch its cryptocurrency alongside the Apple hardware wallet.
Google Wallet
Google Pay already allows the purchase of cryptocurrencies via its platform. Thanks to the power of the Play Store, Google will be able to control crypto payments on the Play Store apps, which makes room for a Google native stablecoin or cryptocurrency.
