PayPal Wants To “Expedite” Crypto Payments
Paypal is reportedly looking for a faster way to process cryptocurrency payments. In fact, the company recently submitted an application titled “Expedited Virtual Currency Transaction System” to the U.S. Patent and Trademark Office (USPTO). The application goes over the process used to exchange private keys between a buyer and a seller. Private keys basically consist of a sequence of letters and numbers that are used to encrypt and decrypt information exchanged between a sender and a recipient.
In the filing, Paypal proposes a method to reduce the time needed to complete a transaction between a consumer and a merchant. Moreover, the company claims that its method will remove the requirement of having to wait for transactions to be processed by the next block generated on the network. This can be done by using secondary wallets that have their own unique private keys, according to PayPal.
Detailed Description Of Faster Crypto Payments
Using this technique, the company explains, will allow the payments system to send “predefined amounts” of virtual currency by linking it to unique sets of private keys. Furthermore, in the detailed description section of its lengthy patents application, Paypal writes:
“Embodiments of the present disclosure include systems and methods for providing expedited virtual currency transactions through the use of private keys…[this can] practically eliminate the amount of time the payee must wait to [receive payment] by transferring to the payee private keys that are included in virtual currency wallets that are associated with predefined amounts of virtual currency that equal a payment amount identified in the virtual currency transaction.“
Notably, the filing of this patent is not surprising as Paypal has been working closely with a number of Bitcoin payment processors such as BitPay, GoCoin, and Coinbase since 2014. These partnerships have allowed merchants to accept digital currencies via Paypal’s Payments Hub. It also appears that the company is quite fond of cryptocurrencies, because Peter Thiel, Paypal’s co-founder, has reportedly made substantial investments in Bitcoin through the Founders Fund.
Plenty Of Competition
Companies around the globe are working hard to develop faster, more secure, and cost-effective payments solutions. For instance, as Core Media reported, the Ripple company has introduced a suite of products that aim to revolutionize cross-border transactions.
Although Paypal may be a leader in payments processing, it seems to have realized that constant innovation is necessary to remain competitive and relevant in the rapidly evolving digital economy. Moreover, with so many companies trying to provide the best payment methods, it is unlikely that every effort will be successful.
At this time, it is not clear when Paypal’s proposed solution will be launched and which cryptocurrencies it will support.