Bitcoin investors and customers holding bitcoin, bitcoin cash, Litecoin, and Ether in their PayPal wallets can now convert their digital currencies to traditional fiat currencies during checkouts with PayPal for making purchases.
PayPal Holdings Inc is all set to make an announcement later this Tuesday that it has begun authorizing US customers to make use of their crypto holdings to make purchases with its more than a million online merchants worldwide. This step will boost the popularity and usage of digital currencies and assets in regular commerce transactions.
In its statement, the company said that Customers who have bitcoin, bitcoin cash, Litecoin, and Ether in their Paypal wallets would be able to convert their digital currencies to make regular purchases.
The PayPal service that was in talks since late 2020 will now be available with all its 29 million merchants in the upcoming months.
“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,” said Dan Schulman, PayPal President and CEO, in his statement to Reuters ahead of its formal statement.
Checkout using Crypto enables a PayPal user to sell, hold, or purchase cryptocurrencies, launched by the San Jose, California-based payments firm in October 2020.
This service offering by PayPal, the largest mainstream finance organization, will open its doors to cryptocurrencies. It has also fuelled the increasing prices of these virtual coins.
“As the use of digital payments and digital currencies accelerates, the introduction of this feature continues our focus on driving mainstream adoption of cryptocurrencies, while continuing to offer PayPal customers choice and flexibility in the ways they can pay using the PayPal wallet”, said Schulman. “Enabling cryptocurrencies to make purchases at businesses around the world is the next chapter in driving the ubiquity and mass acceptance of digital currencies.”
The popular cryptocurrency – Bitcoin, has almost doubled its value since the beginning of 2020. This boost was due to the interest of larger finance companies in Bitcoin. These firms bet on increased adoption of the digital coin and consider it a shield against future inflation.
The service launch by PayPal has come immediately a week from Elon Musk’s statement regarding the use of Bitcoin for purchasing Tesla cars. He said, “customers can buy its electric vehicles with bitcoin.” However, Tesla also indicated that it will not convert the digital currency to fiat currency like PayPal merchants but will hold the cryptocurrency.
This developing asset continues to gain the interest of mainstream investors. However, it still has to gain more popularity as a payment option, owing to its continual volatility.
PayPal is definite that their new service can revolutionize the conventional transaction, as merchants are not willing to take volatility risks and would prefer transacting in fiat currency.
“We think it is a transitional point where cryptocurrencies move from being predominantly an asset class that you buy, hold and or sell to now becoming a legitimate funding source to make transactions in the real world at millions of merchants,” said Schulman.
PayPal will not be charging any transaction fee during the checkout using the mentioned cryptocurrencies. However, this is a limitation that allows only one type of coin for every single purchase. The company stated, “All transactions are settled in dollars and converted to the applicable currency for the business at the standard PayPal conversion rates.”