What Does DeFi Mean for PayPal?
Cryptocurrencies, besides being used mostly for speculative purposes, also have a promising real-world use cases via something called decentralized finance, or DeFi. And there is a ton of excitement among the crypto community regarding this potentially game-changing technology.
Crypto enthusiasts hope that DeFi can change the structure of the financial services industry. The electronic payments industry, in particular, is dominated by large organizations, such as PayPal (NASDAQ: PYPL), which make their money by charging transaction fees on the payments that run through their networks. DeFi is aiming to eliminate these expensive intermediaries.
PayPal, with trailing 12-month revenue of $25.4 billion and a market capitalization of $144 billion, certainly has the scale to try and defend itself from the growing popularity of DeFi protocols. Nonetheless, its management should at least appreciate the competitive threat.
Source Fool.com
