PayPal vs Jax.Network: day-to-day options vs long term benefits

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People work hard for money and naturally, they want to be able to spend that money. With the spread of cryptocurrencies it has become easier to transact with them. More and more merchants have started to accept them. Cross-border transactions are also cheaper when executed with cryptocurrencies. Yet, they are far from being mass-adopted, the price volatility and lack of scalability are two major technical hurdles on the way. 

Even with cross-border transactions, PayPal still dominates the market. Jax.Network is a new protocol anchored to Bitcoin and claims to fix these two issues. Let’s compare it with PayPal and see who has the competitive advantage. 

PayPal vs Jax.Network: the comparative analysis of their features

The distinctions between PayPal and Jax.Network, as payment processors, are shown in this table:

FeaturePayPalJax.Network
Number of transactions (scalability)PayPal can complete a large order of transactions. As of 2018, it could do around 193in a single second on average. Thanks to its sharding solution, Jax.Network can process transactions at par with Visa or Mastercard, i.e. thousands per second. 
Transaction fees for deposits and withdrawalsThe transaction fee associated with PayPal keeps getting higher with time. The transaction fee is not fixed and varies with the space taken in the block that is mined. The network is optimised so that the transaction fees can be minimised.
Working principlesPayPal works when a user attaches their bank account to the PayPal account; it accepts 25 currencies as well as Visa, Mastercard, and AMEX.Jax.Network is a decentralized protocol with its native token. Anyone in the world accepting JAX can receive and send transactions. 
International paymentsInternational payments with 4.4% transaction fees; even with failed transactions, this fee is kept by PayPal.International payments can be done in the same way as Bitcoin, through downloadable dedicated wallets.
Supporting currencyPayPal acts as a mediator between your bank and fiat currency deposited.Jax.Network has its own native coin that allows you to do transactions with the network. 
SecurityAfter logging, a user receives a security challenge loop. This issue and several others such as hacked accounts are common.Jax.Network is safe from attacks like 51%. It is also more decentralized so that there is no information stored online about a sender and receiver, except their respective public keys. 
GoalThe goal of the organization is to promote easy transactions internationally.The goal of the network is to promote crypto adoption for day-to-day transactions. 
MediationThe bank and the government act as mediators in the process.There is no mediator in the system, it is fully decentralized and fitted for peer-to-peer transactions.
RewardsThe rewards are in points, depending on the transaction amount.JXN or JAX for miners. JAX coins for liquidity providers, i.e. staking. 

Benefits & disadvantages

Multiple conclusions can be derived from the above table about the advantages and disadvantages of Jax.Network and PayPal. Nothing is perfect and both can be equally important for many people.

  • PayPal takes up to 2.9% transaction fees when you are transferring money within a country. If a person is in another country, you will have to pay 4.4% fees, which is even higher. Jax.Network, however, has a negligible amount of fee for initiating transactions.
  • In PayPal transactions, the government and the banks will moderate and check every transaction that occurs. In the case of Jax.Network, there is no intermediary, and a user can transfer the funds in their account at their discretion. 
  • PayPal supports fiat currency whose supply is regulated by the government itself. The supply of crypto is regulated at the protocol level, and there is often a supply cap for most cryptocurrencies. However, JAX coins don’t have a cap, but mining is limited only when there is a demand for transactions through a market-driven approach. In doing so, JAX is a stablecoin fitted for day-to-day payments. 

What’s better

There are multiple differences between PayPal and Jax.Network. On one hand, if you want to transact money to some merchants or eCommerce platforms using the money in your bank, PayPal is more convenient. On the other hand, if you are comfortable with crypto and want a platform wherein you don’t have to continuously worry about high fees, intermediaries, etc, then definitely Jax.Network can be the one for you.