Paypal Alternatives using Blockchain and Cryptocurrency

Before much was known about cryptocurrencies, PayPal was the go-to platform for transferring money via email. However, cryptocurrencies and the platforms around digital money are fast replacing traditional means of payments, including PayPal. The big boost started with the invention of blockchain and Bitcoin, where transacting in cryptocurrencies has been an eye-opener for many, making other means of transaction archaic in comparison.

On top of new methods of payment, there have been complaints about how frustrating PayPal services have been to different users. A common complaint is how PayPal have denied user’s hard-earned funds for months, putting individuals and corporate organisations in massive debts. 

And then of course there is the greatest sin of all – PayPal doesn’t support cryptocurrencies.

However, as the mainstream has woken to the blockchain and cryptocurrency industry, the online payments giant has been forced to take note. The crypto alternative to PayPal is here, but is it ready for the long road to mass adoption?

There are multiple platforms that allows anyone to perform peer-to-peer payments using cryptocurrency. Their goal is to replace old payment systems such as PayPal and make the most advanced payment systems available to everyone.

Blockchain and Cryptocurrency, the payment method of the future


PayPal is a centralised system and therefore has a body of members who decide how much users pay on every transaction. These fees sometimes are very high when compared to digital currencies. You’ll be forced to pay up to 5-7% of what you are transferring. Cryptocurrencies, on the other hand, are decentralised means of making transactions. This means there is no particular body that sets transaction fees on blockchains, which cryptocurrencies are processed on. In comparison to PayPal, the near-zero fees charged by the blockchain network is paid to miners as rewards for validating transactions. Hence, low fees when transacting has made the use of cryptocurrencies a top choice against PayPal.


Regarding speed, though both types of transactions are instant, many things can go wrong with PayPal, which has proven to freeze funds for up to 180 days. The financial institution connected to the Paypal account can also be a massive hindrance in making prompt payments. Additionally, one of the biggest problems reported by PayPal users is that their accounts can be immediately frozen.

Under a decentralised network, this simply cannot occur as there is no central clearing house that can lock you out of your digital wallet. On the contrary, cryptocurrency transactions will never be withheld, and they are starting to get super fast with for example the Graphene blockchain that Blockbasis is built on


The Mt. Gox fiasco was the direct result of a centrally controlled entity unable to properly secure their customers money – something that PayPal has obviously more experience with. Nonetheless, according to an article on Cointelegraph a centrally controlled system poses greater risk to its users as it is an attractive target for hackers, which keeps happening over and over again to numerous banks.

Hacking a cryptocurrency account is way more difficult that a Paypal one. A Bitcoin address saved on a paper wallet is almost unbreakable and is known to be the safest way to keep your Bitcoins secured. There are also options for other cryptocurrencies –  such as web wallets with 2FA or hardware wallets like Trezor or Ledger.

Cross-Border Payments

When it comes to cross-border payment solutions, PayPal is restricted in some countries or not available entirely. PayPal is not available in every country with notable exceptions being Iran, Afghanistan, North Korea, and Haiti. Thus, Paypal has some limitations on international transactions.

Cryptocurrencies, on the other hand, can’t be reined based on location. You can send payments to and receive payments from anyone anywhere in the world. There are some countries where cryptocurrencies aren’t allowed, but people still find a way to use them. Cryptocurrency is true transnational currency because it is border-agnostic like the Internet. In other words, it can be controlled to an extent on a very local level but cannot be shut down globally unless electricity is shut off everywhere in the world. 

User Experience

User-friendliness is crucial for mass adoption and PayPal undoubtedly is easy to use, a newbie pretty much knows what to do without instructions to be able to send and receive transactions. 

Cryptocurrency wallet interfaces are also becoming super user-friendly. Depending on the platform, there are multiple cryptocurrency wallets for various coins, giving you options to choose what interface you find much easier to use. Aside from having your digital currencies stored on wallets, you can also make use of cryptocurrency exchanges. These exchanges also make improvements to their platforms, to make the platform easy to use for their users.

Blockchain solutions limited

The world of cryptocurrency and blockchain have virtually exploded the past 2 years. No longer known only as the technology on which Bitcoin was built, it has been deployed or is under active development in virtually every industry, especially, payments.

However, while payments between individuals are gaining momentum, the transactions between businesses and consumers (B2C) have been extremely difficult.

The first issue is that cryptocurrencies are extremely volatile. The volatility frightens would-be crypto-merchants and businesses who discover themselves unable to grapple amongst the potential for a massive as well as abrupt dip in transaction value.

Additionally, the sheer number of cryptocurrencies available for utilisation has left users as well as merchants scratching their heads at the level of tech needed to actually enter the market. And to top it all off, transactions are irreversible, making all sales final and returns hence risky for both parties since the buyer protection and seller protection are questionable. 


As you’ve probably worked out by now, UTRUST is a payment platform, much like Paypal or other payment platforms you use to pay for your online purchases. However, UTRUST is not a new blockchain network or yet another cryptocurrency. Rather, it is a sophisticated platform which combines the power of several blockchain networks into one ecosystem. This simplifies the cryptocurrency payment experience for users while providing a seamless integration for merchants to accept crypto into their existing systems. 

Like any payment platform, there are 3 entities, the buyer, the merchant and the middleman which is the payment system, in this case UTRUST.

In a Medium article, UTRUST’s CEO explains: ‘’UTRUST is the outset cryptocurrency payment solution inwards the world that provides buyers amongst a purchase protection. The next-gen version of PayPal is Blockchain-based as well as designed to brand online payments safer, faster as well as cheaper.’’

In terms of the buyer, the main difference will be the buyer pays in cryptocurrency. You see the 2 biggest hurdles for mass adoption of cryptocurrency is (1) how to buy crypto and (2) how to use cryptocurrency. UTRUST is attempting to offer easy online shopping with cryptocurrency, that would be a real leap towards mass adoption of cryptocurrency.

Nowadays consumers can send cryptocurrency payments to a merchant but if the merchant does not deliver the product or service, consumers can lose their money with no money-back-guarantees. UTRUST protects buyers of online purchases with a proprietary buyer protection system. UTRUST is a cryptocurrency solution to focus on protecting both the buyer and the seller through an escrow protocol. In short, UTRUST acts as a third-party mediator which, if necessary, holds funds until delivery of the product or service. The platform allows for efficient and friendly dispute resolution between buyers and sellers. When both parties fail to reach such a resolution, UTRUST steps in and upholds the standards of traditional payment methods. When everyone is protected, everyone wins and business thrives.

Buyers also get the choice of using the funds from any of their existing cryptocurrency wallets, and they don’t have to create an account if they don’t want. This feature essentially rules out all credit card frauds. Because only the buyers have access to their own private keys so there is no chance of a third party gaining access to their funds.

UTRUST isn’t just a win for the buyer, it’s also a win for merchants. The first advantage for merchants is payment processing. As mentioned above, there is a buyer protection scheme which is very attractive to buyers. Usually this comes at the expense of longer payment processing times for the merchant to receive their funds, but with the reputation system, merchants could potentially get their funds as quick as within seconds.

The second is the low cost rates. UTRUST charges only 1% payment fees for the merchant and no costs for the buyer, with access to the best exchange rates.  Another big advantage for merchants is no chargebacks. A chargeback is when the buyer makes a complaint about a faulty good they received and the bank forces the merchant to refund the costs. According to Steemit, chargebacks cost companies $6.7 billion dollars in 2016 and credit card chargebacks are increasing at a rate of 20% per year. This is because there are many cases of credit card frauds, where purchases are made without the owner’s consent.

UTRUST, being a blockchain project and again with no risks of credit card fraud due, prevents chargebacks and makes transactions straightforward, saving the company both time and money. Unlike other crypto-payment platforms, because the buyer’s funds are immediately converted to fiat, there is no risk of large currency price volatility.

Implementation of the payment software is made easy, it’s a simple addition of a payment API added onto a website and can be in addition to currently accepted forms of payment already e.g. Paypal. So merchants have nothing to lose by trying out UTRUST.


While PayPal doesn’t seem to show any interest in cryptocurrency and the future of digital money, Blockbasis does. The idea came out of the frustration that PayPal wouldn’t fulfill it’s original long term goal of ‘’converting the financial world system from a series of heterogeneous insecure databases into only few databases.

Moreover, there are a few other issues that cryptocurrencies have. For example, if you send funds to the wrong address – you may never recover them back. So you need to be extra careful about it. Another thing that can happen is to mistake Bitcoin and Bitcoin Cash – this has happened before, and when you make that mistake sending for example Bitcoin to a Bitcoin Cash wallet, they will be lost forever. This will never happen when using a service like Blockbasis, where all you need is an email.

Blockbasis is built on Bitshares, which is based on open-source MIT-licensed Graphene technology and its blockchain comes with many benefits. It is easy to sign up and make transactions using just by email, so you can avoid the above problems caused by the complicated public and private keys

The transaction time is speedy because of super fast block confirmations on Bitshares. Transactions get written to the blockchain within 3 seconds, and on average in under 1.5 seconds.

Blockbasis is highly secure as the consensus mechanism used on Graphene is Delegated Proof of Stake (DPOS), which is virtually impossible to hack, as it would involve taking out many active and backup, global, trusted delegates.

There are many types of currencies and assets available on Blockbasis rather than just the core Bitshares coin, BTS:

In comparison with UTRUST, which only offer transactions with UTRUST, Bitcoin, Ethereum, Digibyte and Dash, Blockbasis has more flexibility to transact and exchange virtually anything where there is a buyer and seller. In addition, on Blockbasis people can earn passive income by several ways by depositing on the platform, which you can read more about on this link.


We do not know what technological advancements the future holds for financial transactions, but as much as we know, current technologies are beating older legacy methods of transacting. Paypal is an established giant in the payments industry – but cryptocurrencies are gaining more field daily, with new and promising payment platforms on the rise.