Losing 62% Of Payments Due To Paypal Pulling Out
The startup, based on Ethereum, tokenizes and subsequently sells appropriately in the US. This allows users around the world to take up shares in property ownership, doing so for as little as $50
According to the twitter account of RealT, the platform held 62% of his total purchases via Paypal before the firm banned it. Within a year’s time, the total amount of money given to RealT via Paypal transactions stood at $800,000. The total amount of disputes raised by consumers stood at $600 for four separate incidents, approximately 0.075% of the total in disputed funds.
Not Going As Expected
However, the platform’s customers started to report issues in regard to Paypal transactions in early April. A few weeks later, Paypal sent a letter to the company, informing that it’s been banned from the payment platform due to “excessive risk.” Paypal further prohibited the possibilities of appeals being made to the decision itself.
PayPal Axed Us!
Unfortunately, PayPal has abruptly, and without warning, blocked all payment services for RealT
Users are no longer able to pay via PayPal
— RealT (@RealTPlatform) May 5, 2020
With this grim news, the team was forced to ask themselves whether or not a business is capable of surviving on just crypto alone. The answer proved to be “Yes” very quickly.
Within the week of the company’s shift to crypto-only payments, orders started to barrel through RealT’s Coinbase Commerce payment provider. The increase was more than 240% thanks to the popularity of their sixth tokenized property. This property managed to raise $203,333 in shares, each worth $51 apiece.
All-Time-High in Sales
As RealIT stated, this was the best week of sales yet, even with 100% of the revenue coming through crypto format. According to the blog post made by RealT, this property in question was the fastest ever sold within the Ethereum blockchain.
According to the blog post, RealT views the fact that they managed to achieve an all-time-high despite only using crypto as a payment option to be very bullish for crypto. However, it should be noted that it considers more payment options as always being better.
This isn’t the first time Paypal has cut off its services and customers for an arbitrary reason. Back in 2018, users received warning emails that advised them against crypto, stating that it was prohibited under the Acceptable Use Policy. It even dropped Pornhub back in 2019 due to the platform using cryptocurrencies, which just forced it to go all-in with crypto.
Paypal has some serious concerns if it wants to deny the revenue they get from PornHub of all places, yet they were one of the first to join Facebook’s Libra project. They pulled out later due to threats of the enhanced scrutiny, however.