BCH vs Paypal : Fee Comparison of Yours.org & vlnc.co
vlnc.co is a publishing platform without advertising where users reward creators for good content. Sound familiar? It's basically Yours.org but payments are processed through Paypal instead of BCH. In the initial iteration, posts feature a super-like option in addition to a standard like button. Super-likes send a PayPal donation (5$ default) to the author of the post.
After signing up and creating a post, I did some research into transaction fees involved and how they compare to BCH. Here's what I found.
vlnc.co publicly exposes the users email address to accept payment but the transaction history is private. Yours.org exposes each users BCH address providing pseudonymity but the entire transaction history is exposed to the public.
Paypal charges 2.9% + $0.30 per sale. Vlnc.co associates the user email from sign up to the donate button (publicly exposing it) with a default amount of 5$. So, the $5 default has a fee (paid by the content creator) of around $0.45. 😱If the Paypal user applies and is granted to accept micropayments (anything under $12) the fees are slightly cheaper but the rate applies to all payments after you opt in. The fee is 5 % of the transaction amount, plus 5 cents. A $0.20 micropayment transaction has a $0.06 fee payed for by the content creator (other amounts shown in this table).
Bitcoin Cash Payment
The current BCH median tx fee is around $.003. Yours.org so far has had pretty good fee estimation but could improve. Yours.org takes a 5% cut of content purchases, comments, and tips on posts although direct payments are free. A direct $0.10 payment to a creator on Yours.org as of this morning had a $0.002 network fee.
The most successful micropayments social platform will utilize the currency with the greatest network effect. The relative disutility for not using the most valuable currency increases the larger their difference in market cap is. vlnc.co has the advantage of using USD and remains non-custodial by using paypal. However, users bare the regulatory compliance cost through high paypal fees mitigating the utility advantage of USD. Yours.org uses the currency with next best utility, bitcoin. Micropayment platforms such as steemit.com or minds.com utilize native tokens which seemingly relieve them of regulatory compliance costs. However, the relative disutility of their tokens compared to bitcoin put them at significant disadvantage to Yours.org. Yours.org is here to stay.
1 of 1 reviewers say it's worth paying for
0 of 1 reviewers say it's not worth paying for