PayPal Customers Can Use Their Cryptocurrency With Nearly 30 Million Merchants
PayPal has recently enabled their newest feature, “Checkout with Crypto.” This service allows customers to utilize cryptocurrency, through more than a million online global merchants. The development of this service began toward the end of 2020, with the ultimate goal of connecting cryptocurrency customers with nearly 30 million merchants. Overall, this move has the potential to boost the use of digital assets significantly, especially in terms of day to day commerce.
PayPal customers currently holding bitcoin, bitcoin cash, litecoin, or ether, will be better enabled to convert holdings to fiat currencies during checkout. Before their formal announcement of the program, Dan Schulman, CEO and President of PayPal, expressed his ambitions of facilitating purchases using cryptocurrency through the use of a credit card, or debit card.
Building on the ability for users to buy and sell cryptocurrencies, Checkout with Crypto launched in October as a California-based payments company. This move poised PayPal to become the largest mainstream financial company to open their network to cryptocurrency. Nearly doubling in value since the beginning of 2021, Bitcoin, along with other virtual coins, have experienced a boost in interest, as well as price. Larger financial firms are expecting a greater adoption of cryptocurrency, as well as using it as a hedge against inflation.
This announcement comes a week after Tesla announced they would begin accepting cryptocurrency payments for their vehicles. However, Bitcoin based transactions made through PayPal will be converted into fiat currency, whereas Tesla will hold the bitcoin received as a payment. Although this emerging asset continues to gain traction with mainstream investors, it hasn’t been accepted as a form of payment simply due to volatility. PayPal is hoping to reverse partiality against cryptocurrency by exchanging Bitcoin for fiat currency to reduce or eliminate risk.
Schulman discussed in PayPal’s fourth quarter financial results that the company has now designed an extensive roadmap, mainly focused on digital, crypto, and blockchain currencies. Additionally, PayPal has plans to purchase Curv, a startup that provides a secure infrastructure for blockchains and digital assets. PayPal also doesn’t have any plans to charge crypto transaction fees at checkout, however, only one type of coin may be used with each individual purchase.
“It is a transitional point, where cryptocurrency moves from being predominantly an asset class that you buy, hold, and or sell, to becoming a legitimate funding source to make transactions in a real world.” Dan Schulman said.
PayPal’s acceptance of cryptocurrency only highlights that more companies are slowly becoming further confident in the future of digital currencies. As time goes on, we can expect more companies to follow in their steps and begin to accept the use of cryptocurrencies.