According to latest reports, PayPal is coming out with an app that will allow speedy, low cost payments all around the world. This app is being called Xoom, and if its proposed functionalities are to be believed, it could give existing crypto-based payment protocol Ripple (XRP) a run for its money.
PayPal is yet to clarify what technology has been used to underlie the newly conceptualised Xoom app, but as per reports, it is slated to offer its services to as many as one hundred and thirty countries around the globe. The primary objective of this project seems to be to ensure that customers around the world can enjoy speedy cross border payments. As most crypto enthusiasts would be aware, that is precisely what Ripple has been looking to provide its users with.
Xoom is in a position to easily leverage the pre-existence of PayPal’s massive user base as the payments major is a well-known name in its field, and has a very large number of users spread across many parts of the world. The new app allows a new kind of functionality to a pre-existing service and that is the trump card that PayPal seems to be having, vis-a-vis Ripple.
However, this app is likely to face issues because it will be having a set limit on the transactions that can go through it. Large customers are likely to object to the €8,800 limit. As far as this aspect is concerned, Ripple has a clear advantage, because it has set down no limit whatsoever on the transaction size that can go through its platform.
Moreover, we are yet to find out if PayPal’s new offering can truly beat Ripple as far as the speeds are concerned. Only with the launch of this app, can we truly figure out if the new offering can dethrone Ripple in the realm of fast and easy cross border payments.