PayPal Now Offers and Accepts Cryptocurrencies

Categories: News | Published by: MBC Writer

27/10/2020

PayPal has launched a new cryptocurrency service allowing clients to buy, sell, and hold digital money. With this decision, the company has officially entered the crypto market. The PayPal users will, from now on, be able to trade in Bitcoin and other virtual coins directly from their PayPal account.

Initially, PayPal is planning to offer Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, a Bitcoin spin-off. The new service will become available to the US users in the upcoming weeks, while the international roll-out is planned for the beginning of 2021.

Increasing the Usage of Cryptocurrencies

PayPal said they were to boost digital currencies. The company will enable customers to make payments and shop with cryptos at its 26 million merchants from PayPal eWallet.

The clients will be able to convert the virtual money into fiat currency without any fees. PayPal’s partners will then receive payments in fiat currency with no additional integration or fees. Simply put, PayPal is adding a new payment method to its digital wallet.

The company has also got a conditional Bitlicense by the New York State Department of Financial Services (NYDFS). NYDFS representative said this approval was a result of the new framework from June 2020 for conditional Bitlicese intended to regulate the New York virtual currency marketplace.

Cryptocurrencies still haven’t got the needed traction, mainly because people don’t understand blockchain technology and how it is possible to make payments without actual money.

To help people understand and accept this new payment method on a larger scale, PayPal has prepared educational content to explain the account holders the cryptocurrency ecosystem.

Commenting on the New Service

Dan Schulman, president and CEO of PayPal, explained that the shift from physical to digital currencies was inevitable. He hopes PayPal will encourage people across the globe to adopt and use cryptocurrencies. Furthermore, the company is preparing for the possible new digital payment method developed by central banks and financial institutions.

PayPal is the world’s leading mobile payment service, with global reach and digital payment expertise. With one of the largest merchant networks worldwide and over 300 million active accounts, PayPal can facilitate the understanding and usage of these new digital payment instruments.