Here's why Paypal loves bitcoin, put simply - page 2.

suryc

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Quote from: gonnafly on September 28, 2014, 08:34:12 AM

The reason PayPal are embracing bitcoin is because they are currently unable to serve the market of digital asset vendors.
http://en.wikipedia.org/wiki/Chargeback#Reason_codes

Check out this "Quality" reason code. It essentially allows blatant theft of digital products. Take this scenario:
1. I buy a digital asset from you (some Photoshop design files) for $100
2. I claim the files are of poor quality and open a Paypal dispute
3. Paypal sides with you and stating digital assets cannot be returned, the dispute is closed in your favour
4. I escalate the dispute to my credit card company
5. The CC company says "Did you return the product?"
6. I say "hurr durr Yes... I sent it (the files) back" (Digital assets cannot be returned)
7. The CC company approves the chargeback and forcibly takes the money from Paypal
8. Paypal says "So sorry, it's the banks not us" and takes your money
9. Now I have my $100 and your Photoshop files.
10. Enter bitcoin

Paypal loves bitcoin because they hate CC companies, not necessarily because they think it's cool.

Can you clarify, since when is "Paypal embracing bitcoin"?
As of now, they are tolerant of bitcoin at best.

bitsalame

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My take is that Paypal understood that Bitcoins were what Peter Thiel and Elon Musk were originally envisioning for Paypal, and they know that in the future they won't be able to compete against it.
Besides that, only with a descentralized technology they will be able to achieve their new vision: http://www.telegraph.co.uk/technology/news/10146108/PayPal-Galactic-launches-to-plan-space-payments.html

moriartybitcoin

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Bitcoin in general is a SELLER FRIENDLY payment system while Paypal has traditionally been BUYER FRIENDLY. One of the main advantages of Bitcoin is to replace outmoded legacy payment systems like Paypal and credit card. No wonder Paypal is embracing it; either that, or they will eventually be completely eclipsed by Bitcoin.

ebliever

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Quote from: Barnikle on September 28, 2014, 06:51:54 PM

Quote from: Snorek on September 28, 2014, 05:10:34 PM

yeah PayPal loves bitcoin and guess what? Bitcoin price after PayPal announcement is the worst since very long time. What is going on?

Paypal stands to gain NOTHING by supporting bitcoin.
What are they going to do with bitcoin?
Provide a feedback system for bitcoin trades?

What part of the OP didn't you understand? Paypal gains by not being caught up in questionable chargebacks with bitcoin.

Barnikle

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Quote from: Snorek on September 28, 2014, 05:10:34 PM

yeah PayPal loves bitcoin and guess what? Bitcoin price after PayPal announcement is the worst since very long time. What is going on?

Paypal stands to gain NOTHING by supporting bitcoin.
What are they going to do with bitcoin?
Provide a feedback system for bitcoin trades?

Snorek

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yeah PayPal loves bitcoin and guess what? Bitcoin price after PayPal announcement is the worst since very long time. What is going on?

ArticMine

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Paypal largest risk is chargebacks on credit card funding against PayPal as the merchant. Then on top of this they have to pay the credit card companies fees which could easily approach over 50% what they collect in fees from the merchants. Ever wonder why PayPal deliberately makes it as awkward as possible to fund your account when making a payment using a credit card rather than using a bank account? Bitcoin eliminates both of the above risks and can actually allow PayPal to position itself as a consumer friendly add on to Bitcoin that protects against fraudulent merchants.

Barnikle

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Quote from: collinstar on September 28, 2014, 02:54:22 PM

Totally agree - but I can't shake the following:
If you accept btc, then you probably know a bit about it already. Why then even use paypal? I've seen the old: Num_Paypay_Users > Num_Btc_Users; therefore, bigger base of potential customers.
Still though - buyers/sellers of purely digital goods - if there was any group that I'd expect to be able to get bitcoins, it would be this one...

I agree, paypal is pointless if you are using bitocoin.

collinstar

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Totally agree - but I can't shake the following:
If you accept btc, then you probably know a bit about it already. Why then even use paypal? I've seen the old: Num_Paypay_Users > Num_Btc_Users; therefore, bigger base of potential customers.
Still though - buyers/sellers of purely digital goods - if there was any group that I'd expect to be able to get bitcoins, it would be this one...

cccarnation

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That's so true. Considering more and more stuff is going digital, Paypal are simply taking an obvious step in the right direction.

sifter

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Quote from: gonnafly on September 28, 2014, 08:34:12 AM

The reason PayPal are embracing bitcoin is because they are currently unable to serve the market of digital asset vendors.
http://en.wikipedia.org/wiki/Chargeback#Reason_codes

Check out this "Quality" reason code. It essentially allows blatant theft of digital products. Take this scenario:
1. I buy a digital asset from you (some Photoshop design files) for $100
2. I claim the files are of poor quality and open a Paypal dispute
3. Paypal sides with you and stating digital assets cannot be returned, the dispute is closed in your favour
4. I escalate the dispute to my credit card company
5. The CC company says "Did you return the product?"
6. I say "hurr durr Yes... I sent it (the files) back" (Digital assets cannot be returned)
7. The CC company approves the chargeback and forcibly takes the money from Paypal
8. Paypal says "So sorry, it's the banks not us" and takes your money
9. Now I have my $100 and your Photoshop files.
10. Enter bitcoin

Paypal loves bitcoin because they hate CC companies, not necessarily because they think it's cool.

After all the trouble paypal has had, Lol.

Finally accepting it, Why couldn't they see this in the first place.

NotAtOld

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Quote from: GTA on September 28, 2014, 10:02:56 AM

What happens if the files are actually of poor quality?

You ask for a return from a seller, good reputation for a seller and a buyer is important to be able to trade.

validium

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Decentralized thinking

Quote from: Robin_Good on September 28, 2014, 11:37:13 AM

Quote from: bambino on September 28, 2014, 11:03:58 AM

Quote from: GTA on September 28, 2014, 10:02:56 AM

What happens if the files are actually of poor quality?

It's your responsibility to verify the quality before making the purchase. There are heaps of ways to do this without taking possession of the files.

like what?

or one could show the buyer other projects that you have worked on and the buyer can now make his or her own judgement on whether to hire you for the job or not

logger

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Quote from: Robin_Good on September 28, 2014, 11:37:13 AM

Quote from: bambino on September 28, 2014, 11:03:58 AM

Quote from: GTA on September 28, 2014, 10:02:56 AM

What happens if the files are actually of poor quality?

It's your responsibility to verify the quality before making the purchase. There are heaps of ways to do this without taking possession of the files.

like what?

watermarks are the best way. or only send half of the files/pictures (lower half blanked)

Robin_Good

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Quote from: bambino on September 28, 2014, 11:03:58 AM

Quote from: GTA on September 28, 2014, 10:02:56 AM

What happens if the files are actually of poor quality?

It's your responsibility to verify the quality before making the purchase. There are heaps of ways to do this without taking possession of the files.

like what?

DrBitcoin

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I disagree. I think Paypal HATES Bitcoin. I think they are only starting to accept it because as the old saying goes "if you can't beat em, join em." A bunch of smart business men got into a room, and thought..."what would happen if people start to adopt Bitcoin, and realize that they can send money for goods without using our service and paying a 3% fee?"

Paypal smartly decided to hedge their bets. If they didn't adopt Bitcoin, and Bitcoin really took off...especially amongst younger people, more likely to sell things online, Paypal could crumble and disappear in a very short amount of time.

They did a smart thing by accepting Bitcoin.

bambino

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Quote from: GTA on September 28, 2014, 10:02:56 AM

What happens if the files are actually of poor quality?

It's your responsibility to verify the quality before making the purchase. There are heaps of ways to do this without taking possession of the files.

DannyHamilton

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Quote from: Balls on September 28, 2014, 08:48:24 AM

Sorry, but I'm missing something here. I'm confused at how bitcoin is a solution for Paypal and digital goods? How does bitcoin solve this problem?

It eliminates steps 4 through 9 in the Original Post of this thread?

GTA

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What happens if the files are actually of poor quality?

Balls

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Sorry, but I'm missing something here. I'm confused at how bitcoin is a solution for Paypal and digital goods? How does bitcoin solve this problem?

Topic: Here's why Paypal loves bitcoin, put simply - page 2. (Read 2864 times)