By: Franyi Sarmiento, Ph.D., Inspenet, June 29, 2022
Paxful was founded seven years ago in the United States to offer a one-stop solution for buying and selling bitcoin and other cryptos over 400 payment methods. According to Will Fernandez, Paxful’s business director for Latin America.
Amid a juncture of falling prices of bitcoin and cryptocurrencies in general, Fernandez said that behind Paxful there is a trust that locks bitcoin so that there is an escrow that releases the user by himself to ensure fraud-free operations.
The Paxful platform, to date, has 10 million users worldwide, where one user creates the offer to sell bitcoin and another user accepts it to make a match from payment methods such as Western Union, Paypal, Payoneer and many more. Once payment is confirmed, the bitcoin is released to the new owner.
Fernandez expects Paxful to grow by 60% in users during 2022, recalling that by the end of 2021 it had seven million users.
The platform, according to its business director, can be used on the web and in a mobile app based on Bitcoin lightning that offers improved transactionality and allows companies to receive payments in cryptocurrencies.
In an interview with Valora Analitik, the executive indicated that any person can open an account digitally with his or her identity document in each country. That opening is confirmed in five minutes, he said.
For companies, documents must be provided and approval takes one to two days. Once authorized, this company can make transactions for more than US$100 thousand.
He noted that Paxful even has money transfer options on the Swift platform through which money transfers are executed in traditional bank accounts.
By opening an account, the user can trade Bitcoin, Ethereum and Tether, which are the most popular cryptos and, due to the security of its resources, avoids the presence of speculative coins without a track record that could jeopardize the transfer and investment.
One of its largest markets is the United States, the expert said, followed by Nigeria. In Latin America, the largest is Colombia with a growth of 45% since 2021, with the cities where most business is being transacted being: Pereira, Barranquilla and Bucaramanga.
Fernandez explained that Paxful charges a security fee for the user selling the crypto. That fee or commission is 0.5% of the transaction or, he said, can go up to 3% depending on the payment method charged for gift cards.
This material from the Valora Analitik portal was edited for clarity, style and length.
Source: https://www.valoraanalitik.com/2022/06/24/paxful-america-latina-compra-venta-criptomonedas/
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