Customers Can Use Cryptocurrency on PayPal’s Vast Network

PayPal is a widely-used network across the globe. Many online and some offline stores offer secure payment options through a PayPal account. It has also become a popular choice for fast non-commercial transactions, competing with its own service Venmo in terms of speed and convenience. However, one missing feature from PayPal’s services has been the ability to buy and sell goods using cryptocurrencies such as Bitcoin. But that is about to change.

Today, PayPal Holdings Inc. revealed that starting from early 2021, PayPal’s 346 million users will have the ability to use cryptocurrencies to make purchases from the 26 million merchants who are part of the network. The company’s President and CEO, Dan Schulman, aims to encourage users to embrace virtual currencies more frequently in preparation for a future where they will be more commonplace.

Schulman stated, “We are exploring various digital currencies and how PayPal can incorporate them, including cooperation with central banks.”

Once the update is rolled out, PayPal users will be able to directly buy, sell, and store cryptocurrencies in a separate wallet. While customers can use crypto to pay for goods and services, the recipients will receive the equivalent value in fiat currencies such as the US dollar, as many merchants are hesitant due to the cryptocurrency market’s volatility.

PayPal is the first company to receive a conditional cryptocurrency license from the New York State Department of Financial Services. Through a partnership with Paxos Trust Company, PayPal users will have access to purchase popular cryptocurrencies like bitcoin, ethereum, and litecoin.