Top 5 PayPal Alternatives after Misinformation Backlash

Summary

In this video, the creator discusses PayPal's controversial misinformation penalty announcement and the backlash it caused, leading many users to quit the platform. The video then explores alternative apps for various PayPal features. For sending money to friends, Strike, Cash App, and Zelle are highlighted. For savings, Ally Bank offers competitive rates with a unique bucket system. For businesses, Stripe and Shopify are recommended for processing payments. The creator also introduces Lolly for earning Bitcoin rewards on purchases, emphasizing the better user experience and lower fees offered by these alternatives.

Takeaways

• 😀 PayPal faced backlash after announcing a fine of $2,500 for spreading misinformation, causing a significant drop in its stock price and market cap.
• 😀 The video's creator criticizes PayPal for its poor user experience, highlighting issues such as intrusive ads and unwanted offers.
• 😀 The video suggests that alternatives to PayPal offer better services for specific use cases, including sending money and managing savings.
• 😀 Strike is recommended as a better alternative for sending money, utilizing Bitcoin’s network for fast and low-cost transactions across borders.
• 😀 Strike’s use of Bitcoin enables features like streaming payments, which could revolutionize payroll by offering payments every few seconds instead of bi-weekly or monthly.
• 😀 Cash App is another alternative, praised for its commitment to financial inclusion and its Bitcoin-native features.
• 😀 Zelle is mentioned as a reasonable option for sending larger sums of money between bank accounts, offering lower fees than wire transfers.
• 😀 For savings, Ally Bank is highlighted for its competitive interest rates and unique budgeting tools that allow users to allocate funds into different buckets for specific savings goals.
• 😀 Stripe and Shopify are presented as top alternatives for business payment processing, with Stripe offering seamless transactions and Shopify integrating with Strike for Bitcoin payments.
• 😀 Lolly is recommended as a cashback app, offering Bitcoin rewards for online purchases and stacking rewards from credit cards, making it possible to earn more than 100% back on purchases with Bitcoin appreciation.
• 😀 The creator advises against using PayPal to purchase cryptocurrency, calling it one of the worst ways to do so, and suggests exploring other, lower-fee options for buying crypto.

Q & A

What did PayPal recently announce regarding misinformation?

PayPal announced that they would fine users $2,500 for spreading misinformation, which caused a backlash, leading many to cancel their PayPal accounts.

Why did PayPal's stock fall after the misinformation fine announcement?

PayPal's stock fell by about 15%, wiping out around $10 billion from its market cap, due to the public outrage and mass cancellations of accounts.

What is the user's opinion about PayPal's app experience?

The user dislikes PayPal’s app due to its poor user experience, which is filled with intrusive ads and unnecessary offers to encourage spending.

What alternative did the creator suggest for sending money to friends instead of PayPal?

The creator recommends using Strike as an alternative to PayPal for sending money to friends, as it operates on the Bitcoin network, allowing for faster, cheaper transactions.

How does Strike work differently from traditional financial systems like PayPal?

Strike bridges legacy bank accounts and the Bitcoin network, converting USD to Bitcoin and then back to local currencies like euros, enabling faster and cheaper international transactions.

What is the main advantage of using Strike for international money transfers?

Strike allows for quick and cost-effective international transfers, without the fees typically charged by traditional financial institutions like PayPal.

What is the user's favorite savings account app, and why?

The user’s favorite savings account app is Ally Bank, primarily because of its competitive interest rates, user-friendly interface, and features like segmented savings buckets for budgeting.

What alternative did the creator suggest for sending larger amounts of money from savings accounts?

For larger transactions, the creator suggests using Zelle, as it is cheaper and more efficient than wire transfers, despite its somewhat clunky user experience.

Which payment processing app is recommended for businesses as an alternative to PayPal?

Stripe is recommended as a more robust alternative to PayPal for business payments, offering seamless user experience and detailed analytics for businesses.

What are some of the key features of Shopify as a payment processing solution?

Shopify is similar to Stripe, offering a great user experience for online stores. It also integrates with Bitcoin payments via Strike and provides a companion app called Shop for tracking packages.

What is the issue with PayPal's 'deals' section, according to the creator?

The creator dislikes PayPal’s 'deals' section because it includes advertisements that promote shopping while the user is trying to save money, leading to unnecessary spending temptation.

What is Lolly, and how does it provide cashback to users?

Lolly is an app that gives users cashback in Bitcoin for purchases made at various stores. It can be linked to credit and debit cards, stacking rewards from multiple sources, including Bitcoin price appreciation.

Why does the creator believe purchasing crypto on PayPal is a bad idea?

The creator considers purchasing crypto on PayPal one of the worst ways to buy crypto due to the lack of control over the assets and the limitations imposed by PayPal on crypto transactions.