PayPal is one of the most-known platforms around the world, which has gathered quite a huge customer base and it’s pretty much used everywhere as an online payment system. Thanks to its development through the years, it has become quite an easy tool to use, turning into a really successful business, which comes as no surprise why they wouldn’t like to change its existing business model. The problem? Fees. PayPal charges absurd fees for pretty much everything.
Although, this could be on the verge of change. According to Forbes, PayPal has announced for the first time ever its plans to invest in a blockchain related startup. 2019 has been a great year for blockchain technology so far, with many startups and companies surging and developing new techs. The advancements of this technology are being recognized in pretty much every sector in the industry, with blockchain-based applications being developed constantly to improve existing business models. This blockchain evolution is the reason behind PayPal wanting to invest in a startup called Cambridge Blockchain, a startup that’s currently developing a blockchain system for the administration of online identities.
We made an investment in Cambridge Blockchain because it is applying blockchain for digital identity in a way that we believe could benefit financial services companies including PayPal
PayPal spokesperson told Forbes
Cambridge Blockchain is working on a blockchain platform that will help administrate online identities, currently testing its technology in Luxembourg where about 600,000 residents have already signed up for the trial. Another major company that has also shown interest in this platform is Foxconn, a company with years of experience in the development of computer hardware and that currently works on the manufacturing of iPhones for Apple. Foxconn made its investment in Cambridge Blockchain public back in 2018, when it first realized how blockchain technology could be cost-effective and improve current business models and the way data is handled.
PayPal has only shown a bit of interest in blockchain tech with this investment, but it is not clear if it’ll be used or integrated to PayPal in the years to come. However, the company does acknowledge the necessity behind the decentralization of personal information, especially after the Cambridge Analytical scandal. Decentralization can improve the handling of both public and private information, providing secured mechanisms to ensure that data is not being used against people’s will.