How Is RippleNet Going To Be a Threat to PayPal?

Ripplenet threat to paypal
  • In some nations, ripple-based payments may be quite successful.
  • Bitcoin and blockchain networks are nothing new to PayPal.
  • There is no reason why RippleNet shouldn’t upend the current system of international currency transfers.

Amid its recent shortcomings including Securities and Exchange Commission (SEC) lawsuit, RippleNet has posed a threat to the payment community including Paypal, thanks to its over-lapping use cases.

Without PayPal’s unparalleled global network of partners, RippleNet is the new kid on the block. Furthermore, although Ripple-based payments may be quite successful in some countries, there is still a huge gap in that financial picture.

American banks and exchanges have however shunned Ripple ever since the Securities and Exchange Commission of the United States filed a lawsuit against this digital service in 2020. Two years later, the legal process is still in motion.

The first half of 2023 may see a judgment from the courts, although that date may be ambitious. Even then, prospective appeals at various levels may cause the final gavel to fall years later. Additionally, until this problem is resolved, American investors will find no purpose for or value in the XRP cryptocurrency.

Bitcoin and blockchain networks are nothing new to PayPal. Sources fully anticipate that customers will be able to purchase, sell, and send XRP tokens through PayPal and Venmo after Ripple’s SEC lawsuit is resolved.

However, there’s still more! In the end, RippleNet transactions might be included in PayPal’s payment infrastructure. That would be a highly effective replacement for the current bank-like structure that requires few assets.

What is RippleNet

As there isn’t a worldwide payment system in traditional banking, RippleNet uses blockchain technology to enable financial institutions all over the globe to transfer money. The company’s goal is to create a unified global payments system.

Technically, RippleNet is not a blockchain in and of itself, but rather a collection of applications that utilize the capabilities of the XRP network. Despite the fact that all transactions carried out using RippleNet products are documented on the XRP blockchain, RippleNet is not a blockchain in and of itself.

Paypal vs RippleNet: What is the difference?

PayPal is an online payment and money transfer service that allows users to send money via email, phone, text message, or Skype. They offer products to both individuals and businesses alike, including online vendors, auction sites, and corporate users. 

PayPal connects effortlessly to bank accounts and credit cards with PayPal Mobile being one of PayPal’s newest products. It allows you to send payments by text message or by using PayPal’s mobile browser.

Ripple, a real-time gross settlement system, currency exchange, and remittance network is an open-source protocol that is designed to allow fast and cheap transactions.

Some of the features offered by PayPal are:

  • 2.9% plus up to $0.30- A user won’t ever be taken by surprise by unforeseen or fluctuating costs thanks to PayPal`s transparent, flat pricing.
  • Keeping every seller safe: PayPal`s Seller Protection compensates their customers for the entire amount of the qualifying payment if they receive an unlawful payment or a customer claims they never got an item.
  • Easy for them- With just a few clicks, a user can get paid by debit card, credit card, or PayPal transfer. All someone needs to start buying from a colleague is their e-mail address or mobile number.

On the other hand, RippleNet provides the following key features:

  • Large use-case- Transactions including XRP, other cryptocurrencies, fiat currencies, and even physical goods like gold may be completed using the RippleNet exchange network.
  • Speed-It offers quick settlement with confirmation of transactions often taking 4–5 seconds.
  • Cheap- Transactions only cost 0.0001 XRP or a tenth of a penny at the current exchange rate.

Despite how strong it is, PayPal’s system still functions very much like a conventional bank. More than $37 billion in client accounts and monies receivable are held by PayPal, which are offset by $40 billion in payables and cash from customers.

The PayPal system’s core relies on these massive ledger balances, which let the business move money around its internal records as needed. Each of the company’s endpoint markets, which currently total 200 nations, requires the management of certain financial resources.

RippleNet is unique. Instead of keeping a large amount of money in different currencies on hand, RippleNet maintains a worldwide reserve of XRP-based liquidity that is instantly accessible to all parts of the world. 

Ripple collaborates with financial institutions and payment services in dozens of international locations to deliver the key first and last phases in each payment journey.

Ripple (XRP) Price Analysis

RippleNet`s native token, XRP price analysis shows that the digital asset has found stability at $0.4424 after receiving a bearish push from the market according to Coinmarketcap.

At the time of writing, the cryptocurrency is currently trading above the $0.34 level, and it looks like it is preparing for a leg up in the near future. The next resistance level to watch out for is $0.463. On the downside, the strongest support levels are $0.4344.

XRP 24-hour price chart, source: Coinmarketcap

The market capitalization for XRP/USD is currently $22 Billion. The 24-hour trading volume is $1.8 million. The digital asset has been on a bearish sentiment since the beginning of today. 


Practically, there is no reason why RippleNet shouldn’t upend the current system of international currency transfers and replace it with a more efficient one. For PayPal, that would be bad news. 

PayPal’s business relies heavily on international transactions, which accounted for $45 billion in value transmitted in the second quarter.

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Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.

programmer & freelance writer