A lot of people are excited for PayPal to get involved in cryptocurrency. At the same time, one has to keep in mind this company has its own policies. One such policy to be enforced will charge a fee for owners of inactive accounts.
PayPal Doesn’t Like Inactive Accounts
On the surface, PayPal’s platform is actively used by millions of people worldwide. That is only normal, as it is an easy way to send and accept money. Primarily online sellers, freelancers, and companies accept such payments. All of this has contributed to the current and future success of the payment processor. International payment solutions will always be in high demand, for obvious reasons.
At the same time, PayPal can be very strict regarding its own service. A lot of people may not use the platform more than once or twice per year. Although there is nothing wrong with this approach, one has to keep in mind the company will not be making any money through this approach. Moreover, it may end up costing the firm money in the long run, which isn’t ideal either.
To counter these concerns, PayPal will begin enforcing a new policy. Owners of inactive accounts will be subjected to a fee unless they log in at least once per twelve months, or move money in that time period. It is not the harshest requirement for users, but still something to be wary of.
Failing to comply with this measure results in a one time fee of up to €12 or £12. Should a balance be lower than that, it will be drained in full to cover this fee. Accounts without an active balance will not be subjected to this new requirement.
Which Areas Will be Targeted?
It is evident that PayPal seemingly targets specific regions with this new fee. The United Kingdom and most Eastern European countries are included. Other noteworthy regions include Isle of man, Guernsey, Liechtenstein, and Gibraltar. Why these regions are named specifically remains a bit unclear at this time.
That being said, it is not unlikely similar changes will roll out globally. After all, all financial service providers need to make money in one way or another. Charging a fee for inactive accounts makes some sense, albeit it will not be a popular measure.
Another question to keep in mind is how this will affect upcoming support for cryptocurrencies. If someone buys Bitcoin through PayPal’s service, and elves their account inactive for a year, they may be losing money over time as well. As users cannot transfer their cryptocurrency holdings off the platform, that situation may become rather problematic.