Paxful, a leading peer to peer (P2P) Bitcoin (BTC) marketplace, says it plans to promote greater financial inclusion across the globe. The P2P exchange confirmed on July 14, 2020 that it has surpassed $4.6 billion in trading volume and processed around 4.5 million digital wallet registrations.
Paxful has completed its 5th year of service. The company has shared its historical data with Crowdfund Insider. The different milestones achieved by Paxful during the past 5 years show that the P2P Bitcoin marketplace has made steady progress.
“Once reputed to be a breeding ground for fraudulent activity, P2P marketplaces are now one of the most dependable platforms for buying and selling Bitcoin.”
Paxful revealed that it has achieved “a less than 1% dispute proportion” and has given users the ability to conduct financial transactions online in a seamless manner. People throughout the world can use the P2P marketplace to buy or sell Bitcoin from other users.
According to Paxful, its Bitcoin marketplace has reduced the dependency that many consumers had on the traditional banking sector and has enabled faster and cheaper transactions for users, globally.
Paxful notes that it has managed to reduce (transaction) dispute levels to “under 1%.”
The company noted:
“The average dispute rate for all the countries with a minimum of 1,000 trades was a mere 0.025 in 2019 and it took 56 trades before encountering a dispute.”
Since inception, Paxful claims it has consistently added 1 million users every year and is now on track to onboard 2 million users in 2020 alone – which might at least be partially attributed to the COVID-19 outbreak and the dramatic rise in the number of online transactions globally, because many physical financial service provider locations have shut down.
However, Paxful’s management claims that more people are using the P2P Bitcoin marketplace because of high inflation rates, weak or failing national currencies, poor and outdated financial infrastructure, and an increase in economic uncertainty.
Ray Youssef, CEO and co-founder at Paxful, stated:
“The company aligns with the original mission of bitcoin as I felt that we need to give humanity a people-powered marketplace. We built Paxful to help the little guy and create wealth for those who need it most. There are people who live with restrictions and limitations we cannot imagine. For true financial inclusion to happen, it requires a free market for money transfers,”
Paxful’s year-over-year growth grew from around $100,000 in total trading volume in July 2015, to its first $1 million a few months later in October 2015.
It was then reportedly followed by $10 million in trading volume during February 2016 and Paxful reached its first $100 million in trading volume in January 2017 – which was when Bitcoin (BTC) was trading at around $1,000 and then briefly surged to nearly $20,000 by December 2017.
Paxful notes that its first billion in US dollar trading volume was reached May 2018 during the extended cryptocurrency bear market. At present, the average amount per trade on Paxful is $102, which is notably 2x the average from back in 2015 when it was about $45.
As mentioned in the release:
“[Paxful reported] … a 34% increase in volume when comparing H1 of 2019 to H1 of 2020. 2020 has also seen over $182M in volumes done each month. Compared to 2019, in which the marketplace saw 488,000 new users during H1, 2020 has seen over 1.1M new users which was an increase of 130%.”
Artur Schaback, COO and co-founder at Paxful, said the P2P marketplace is a “people-focused” company that aims to use blockchain tech in the best way to benefit people who need access to modern financial services.
“We will continue to build products to accelerate the process of financial inclusion. This growth is just the beginning for the world of peer to peer finance.”