Lndr App To Integrate With PayPal Making it Easier to Buy Cryptocurrency

A new cryptocurrency lending app called Lndr is planning integration with one of the most popular financial services in the world: PayPal. This integration will open the ownership to digital assets to 100 million people around the world, which can cause an unseen widespread of cryptocurrency usage even for people who never before considered using cryptocurrencies.

Just yesterday, the Lndr Dapp announced that it had added an option for the users to be able to settle loans on the platform using PayPal.

Lndr is a decentralized application powered by the Ethereum blockchain and it was created to be used for expense sharing and casual IOUs. Users can use a total of 20 fiat currencies and ETH on the platform. The platform was founded in 2017 using Blockmason’s Credit Protocol for the fiat currency part of the settlements and ETH for crypto.

The Chief Marketing Officer of the company, Erik MacKinnon, told the media that the company has high expediencies as it is the first company to offer fiat, crypto and now even PayPal as an option for the users of the platform.

The CMO of the company says that the app is very popular right now and picked up a strong following in Turkey as the Turkish Lira lost 35% of its value this year with the recent US tariffs and sanctions against the country. MacKinnon even states that the company’s directors were sort of confused about the growth in Turkey at first, but that it all makes sense right now.

However, 2018 has not been a kind year for the Ethereum blockchain, too, and ETH has decreased in price a lot this year, falling from about $1,400 USD to under $300 USD recently. An 80% drop in only eight months.

Also, the high level of volatility of the company is a grave issue if you want to use the token for settlements, as repayments could vary wildly and loans could be very difficult with such a high probability of volatility.

At the moment, the platform is thinking about cross-currency transactions as a good way to solve the problem. One person could send ETH and the other one could receive USD. The CMO has also acknowledged the problem of using ETH for loan settlement, but they did it anyway because the platform is built on top of the Ethereum blockchain.

To solve all these issues, the company is currently looking at the simpler solutions. They include using Tether (USDT), Dai (DAI) and True USD (TUSD), which are all “stablecoins” known for their price being anchored in fiat currencies like the USD.

Another option that the company is looking into is using other ERC20 tokens, as they are easily compatible with the Ethereum blockchain and they would not be too hard to implement in the system.

At the moment, PayPal works in over 200 countries, so a platform that could connect it to the crypto world is very interesting for the cryptocurrency market. However, the former CEO of the company, Bill Harris, has shown that he did not believe that this could be a viable idea.

When he was questioned over the crypto market, the ex-CEO sarcastically said that they were “drinking Kool-Aid”, a reference to the Jonestown massacre that happened in 1978, in which over 900 people died by drinking poisoned Kool-Aid.

He claimed that the price of Bitcoin would drop to zero after some time. A disputed claim, surely, but that shows that the PayPal executives are simply not crazy about cryptocurrencies.

It’s important to understand that PayPal is not having a partnership with Lndr. The company is only using the open source API of PayPal for integration. While an important first step, it is sure that the company will have to be very successful to attract the attention of the PayPal executives.

However, nobody knows the future and it may come the time in which PayPal is actually able to see the potential of the crypto market and start a partnership.

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