Paypal is using their platform to pump their new stablecoin PYUSD, force crypto traders to use it and absolutely rip-off customers making them pay 2X fees. They pushing their coin was expected but what they are doing is very extreme

The Paypal we all know and love(sarcasm) is back at it again.

Paypal launched their new stablecoin PYUSD about a week ago to a somewhat quiet launch, although this may be expected with the massive volatility crypto markets and seeming sell pressure are seeing.

[Word salad incoming] They describe it as “PayPal USD is designed to reduce friction for in-experience payments in virtual environments, facilitate fast transfers of value…send remittances or conduct international payments, enable direct flows to developers and creators, and foster the continued expansion into digital assets.”

But the important things are always what they don't say rather than what's in your face. So I took a look at Paypal's terms and conditions. Here is where the real facts come out.

In it they say:

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https://preview.redd.it/vha5if5q73kb1.png?width=1355&format=png&auto=webp&s=0e38a3e4f23cf7c568534512fd38eade3866b0a0

You may convert PYUSD to a different Crypto Asset, or convert a different Crypto Asset to PYUSD. At this time, you may not convert a Crypto Asset for another Crypto Asset unless one of those Crypto Assets is PYUSD.

What this is saying is that if you have BTC and want to sell for USDT or have USDT and want to buy BTC, you cannot do that. You must first sell BTC to PYUSD and then use PYUSD to sell to USDT. Or buy PYUSD using USDT and then buy BTC using PYUSD.

Essentially you have to go through PYUSD as an intermediary for every single transaction.A great way to push adoption for PYUSD. Every single transaction requires an extra transaction – one that involves PYUSD. And what does this mean? Double the trade fees for Paypal.

And these are those fees:

https://preview.redd.it/55chv5x393kb1.png?width=815&format=png&auto=webp&s=5d47d110bb232e1aabc299a4d537fa930158b94c

You are paying 3% every time you want to buy/sell/switch from one cryptocurrency to another. Yikes.

And somehow Paypal makes these fees even worse as they say:

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https://preview.redd.it/1uz20pm8a3kb1.png?width=1353&format=png&auto=webp&s=2b87da5552b58a6c68cf08f0722cab70af65fbe3

Paypal charges a spread on the prices you see on their platform such that the prices on Paypal will be different(higher) than what you see on regular crypto platforms that don't use a middleman exchange/issuer. Another Yikes.

So double the fees are bad, but then there are hidden fees in the spread as well. But also by forcing relevancy of their stablecoin, they create yet another money-making avenue for platforms/individuals who use Paypal and/or cryptocurrencies in general to

  1. Buy their stablecoin that they simply print basically for free
  2. Loan their stablecoin to that platform's customers' customer the same way you can trade using margin on USDT which they gain interest income

And considering the decision months ago whereby Paypal changed their terms of service such that they charge customers a large fee if Paypal's disagrees with any social media content any of the users may post, the long and short of it is probably don't use Paypal.

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49 thoughts on “Paypal is using their platform to pump their new stablecoin PYUSD, force crypto traders to use it and absolutely rip-off customers making them pay 2X fees. They pushing their coin was expected but what they are doing is very extreme”

  3. PayPal literally charges the most for everything since forever so it’s no surprise they charging double fees for crypto.

    Just because PayPal deals in crypto now, don’t forget they are shitty company who robs their own customers.

  4. Simply don’t use their services crypto related, easy as that; don’t let them profiting at our expenses.

  5. This is the opposite of what crypto should do. They are abusing it. PayPal being shitty once again… 🙄

  9. I mean PayPal has to make money by robbing people, they used to do same tactics with Fiat and now pushing their garbage PYUSD is nothing new.

    USDT – PYUSD – BTC sounds terrible route and I hope people don’t use it.

  12. It’s PayPal. This was totally expected and on par for them. Really sad to see just how shitty the company ended up being since it was pretty awesome at the beginning.

  14. A cebtralized company forcing their users to use their own stablecoin in their own platform??

    surprised pikachu face

  16. >[Word salad incoming] They describe it as “PayPal USD is designed to reduce friction for in-experience payments in virtual environments, facilitate fast transfers of value…send remittances or conduct international payments, enable direct flows to developers and creators, and foster the continued expansion into digital assets.”

    God I can’t put into words how much I hate this marketing bullshit.

  17. Really wish there was an alternative to PayPal in the UK! They’re rediculous in everything they do. Saying they cna fine you for a social.l Media post, the constant random blocking of accounts the absolutely insane fees.
    At this point id welcome elons all encompassing x app.

    The sooner crypto becomes more mainstream the better

  18. PayPal has been dead to me since they sided with a fraudulent ebayer and kept my money.

    Watch for this new behavior to become the norm for every corporation. You want a refund, he take this Walmart coin instead and here’s a 10% fee if you wish to convert back to your currency or even use it to make purchases.

  22. What’s the big deal? PayPal is a centralized business. They exist to make money from people and this is a great way to do it.

  23. Weird I’ve never been forced to interact with pypl or their coin. Maybe you should stop using paypal if you don’t like it.

  27. How does it compare with their regular fiat fees? You can transfer money either way. Is there any advantageous strategy that can be used between the two?

  28. It’s never even worked for me in Canada.. every single bank I’ve used freaks out at PayPal for some reason and never lets me transfer funds to them.. never understood why but there’s easier ways to buy anyway

  30. Who even uses PayPal anymore? I feel like not many people use it, it feels really outdated now and it’s most useful feature being linked with eBay ended a while ago.

    I’ll be happy to see the end of PayPal.

  33. Oh boy, I forgot how retail commissions look like, I’m now too used to 0.1% fees on crypto exchanges.

  34. The worst stock I’ve ever bought. Finally sold at like a 75% loss in December. 😩

  38. Who would’ve guessed that PayPal were going to have huge fees !! Totally unpredictable

  40. The fees are certainly outrageous, but the restrictions on crypto-to-crypto exchanges are not. PayPal is not a cryptocurrency exchange.

  44. doesn’t this defeat the whole purpose of cryptocurrency? im pretty new to all this but this doesnt seem to make sense lmao

  48. Yea and the SEC won’t say anything about them , but worries about moons lmao

  49. My favourite footballer nickname is Mpaypal. I had to use them a few times in the past while traveling before crypto was a thing and my experience told me that they are a bunch of thieves.

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