Bitcoin just wipes the floor with Paypal

[Jocky]

Numbers from Reddit Gold Purchases show that Bitcoin is effectively cheaper for entrepreneurs and companies, maybe that will help them encourage customers to use Bitcoin and leave that terrible piece of Paypal behind.

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[ElectricMucus]

In April 2013, Bitcoin made up 2.5% of total payments for Reddit Gold. While Paypal was used by 64.9% of the payments. Paypal might be the most used payment provider for Reddit Gold, however, Bitcoin brought reddit 3.23% of the revenue while Paypal only did 63.5%

Uh that's not what I would call wiping the floor.  


Btw my last "Bitcoin" purchase was toner cartridges for which I sold the BTC, used Bitinstant to paypal and checked out with paypal.

[SgtSpike]

That's a false conclusion, bad article, and should be taken down immediately.

All it means is that people paying with Bitcoin are generally paying more per transactions.  In other words, they're buying longer subscriptions, on average, than people paying with other payment methods.

The conclusion that Bitcoin "wipes the floor" with Paypal is just plain wrong any way you look at it (with regards to this particular situation).

[Gabi]

3.23% revenue is an awesome result!

[Kluge]

That's a false conclusion, bad article, and should be taken down immediately.

All it means is that people paying with Bitcoin are generally paying more per transactions.  In other words, they're buying longer subscriptions, on average, than people paying with other payment methods.

The conclusion that Bitcoin "wipes the floor" with Paypal is just plain wrong any way you look at it (with regards to this particular situation).

Yup.

"'Usage %' is what percentage of the quantity of transactions were using that processor, and "Revenue %" is the percentage of the actual revenue came from that type (since you can buy anywhere from a month of gold to multiple years in one transaction)."

[Jocky]

Forgot about the fees?

[Malawi]

That's a false conclusion, bad article, and should be taken down immediately.

All it means is that people paying with Bitcoin are generally paying more per transactions.  In other words, they're buying longer subscriptions, on average, than people paying with other payment methods.

The conclusion that Bitcoin "wipes the floor" with Paypal is just plain wrong any way you look at it (with regards to this particular situation).

I thought it was actual amount received after fees.

[Jocky]

The Usage % is the amount of orders fulfilled, revenue % is the actual amount after fees. That's why there's such a big difference.

[Come-from-Beyond]

Isn't there [sarcasm] tag should be placed somewhere?

[ElectricMucus]

They have a 32% advantage* with coinbase over paypal when it comes to the price of payment processing.

If anything that shows coinbases pricing is very competitive... they just happen to process bitcoin.

*that does not include bitcoin network fees and exchange slippage though.....

[Jocky]

That's a false conclusion, bad article, and should be taken down immediately.

All it means is that people paying with Bitcoin are generally paying more per transactions.  In other words, they're buying longer subscriptions, on average, than people paying with other payment methods.

The conclusion that Bitcoin "wipes the floor" with Paypal is just plain wrong any way you look at it (with regards to this particular situation).

Where is this coming from? Censoring an article because you get the wrong idea about it's content or purpose?
Bitcoin is very very young, and already it makes up a substantial part of the Reddit Gold payments, that's something to be proud of.
Paypal has has more than 10 years to become a convenient payment processor, and they were beaten by Bitcoin in a few years.
Whether your opinion is the same or not, my mind is set. Bitcoin doesn't require a fraction of the fees Paypal does, Bitcoin is faster and has a lot more potential in brick & mortar companies than paypal does, and that in it's premature fase. While Paypal is still ripping off users every day.

Say what you want, but don't claim an article has to be taken down immediately because you can't understand it's purpose. Or at least change your profile pic to two large S's

[Jocky]

They have a 32% advantage* with coinbase over paypal when it comes to the price of payment processing.

If anything that shows coinbases pricing is very competitive... they just happen to process bitcoin.

*that does not include bitcoin network fees and exchange slippage though.....

If being competitive could've made Paypal cheaper, their competition would've tried it. Bitcoin as a system is just much more convenient than credit card providers that Paypal uses, you can't bring those fees down.
What makes you think network fees don't have an effect on Reddit Gold purchases?

[ElectricMucus]

Paypal has has more than 10 years to become a convenient payment processor, and they were beaten by Bitcoin in a few years.

uh no.

[ElectricMucus]

They have a 32% advantage* with coinbase over paypal when it comes to the price of payment processing.

If anything that shows coinbases pricing is very competitive... they just happen to process bitcoin.

*that does not include bitcoin network fees and exchange slippage though.....

If being competitive could've made Paypal cheaper, their competition would've tried it. Bitcoin as a system is just much more convenient than credit card providers that Paypal uses, you can't bring those fees down.
What makes you think network fees don't have an effect on Reddit Gold purchases?

You mis-interpreted my post. Network fees add up to the effective price of the payment, that's all.
My point is, that's not Bitcoin we are talking about here, it's Coinbase, if for any reason paypal would process BTC some day I'm sure they'd be competitive with Coinbase and Bitpay,

[foggyb]

I'll continue to favor bitcoin over paypal, because bitcoin won't can't freeze my account randomly twice in two months.

[ElectricMucus]

I'll continue to favor bitcoin over paypal, because bitcoin won't can't freeze my account randomly twice in two months.

I guess it doesn't really matter what currency it is in for freezing accounts. Of course it depends on the price of a bitcoin transaction if topping up the paypal account on a ad-hoc basis would be feasible to prevent being affected by it.

[foggyb]

What are you trying to say?

[ElectricMucus]

What are you trying to say?

Paypal isn't your enemy.

[Kluge]

The Usage % is the amount of orders fulfilled, revenue % is the actual amount after fees. That's why there's such a big difference.

Usage % does not normalize how large the purchases were.

For all we know, 80% of Paypal users bought 1 month's worth, and 80% of BTC/CB users bought 2 year's worth. Especially because I think Bitcoin users would be more eager to show their support and exacerbate the results of accepting BTC (through CB), the results don't really mean anything except that Bitcoin usage among customers is insignificant compared to other means.

[Jocky]

What are you trying to say?

Paypal isn't your enemy.

I still have to agree on the fact that Paypal's tendancy to freeze accounts and retract funds that I've truly earned is a consequense of the fact that they are dependent of credit card agencies. The buyer scammer protection has gone to far, I won't wear a dress for Paypal to get my money into my bank account, nor do I want to wait a month for it. The absence of these phenomena are inherent in the Bitcoin system, don't you agree?