- PayPal announces service allowing customers to make purchases with crypto
- The service will convert cryptocurrency to fiat at the point of purchase
- Earlier, PayPal also allowed customers to hold, buy and sell cryptocurrency
PayPal announces service allowing customers to convert crypto to fiat for purchases at checkouts. Customers holding Bitcoin, Ethereum, Bitcoin Cash, and Litecoin in PayPal digital wallets can now pay with them in place of regular money.
The service will boost the use of crypto majorly. It will be expanded to all of its 29 million merchants worldwide. PayPal plans to introduce this service outside the U.S. in the coming months. For now, only U.S. citizens are eligible for using the service.
This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside your PayPal wallet. —Dan Schulman, CEO of PayPal.
In October 2020, PayPal allowed its customers to store, buy and sell cryptocurrencies with the company. This move was the first of many to integrate virtual currencies into everyday dealings.
Now, paired with the allowance to purchase using crypto holdings, a streamlined transition to digital platforms can take place.
This news is part of a recent influx of interest in cryptocurrencies by large companies. Just last week, Tesla owner Elon Musk tweeted that the company will start accepting bitcoin payments for its cars. However, unlike PayPal which plans to convert digital money to fiat cash, Tesla will hold onto bitcoin. Both Visa and Mastercard are also looking to expand to the digital currency space.
Major cryptocurrencies have risen in value as a result of this. Still, concerns about volatility are at large. Still, concerns about volatility are at large. PayPal hopes to solve that by letting customers convert crypto to fiat as they pay. Its decision to support crypto use in trade also helps greater acceptance by the public for DeFi.
Schulman added that this will complete cryptocurrencies move from asset class to an actual source of funding. As such, this will be a pivotal change.
The company also stated that it will not charge customers any extra transaction fees on crypto payments. However, they can only pay with one type of coin per purchase.