PayPal has launched a crypto checkout service that enables consumers in the U.S. to use their cryptocurrency holdings to pay its global online merchants. This move could accelerate the adoption of cryptocurrency amongst merchants and consumers.
PayPal has been working on this service since late 2020. In the coming weeks, PayPal will make this service available to all of its 29 million merchants.
How the Service Works
This service will allow customers to convert their digital assets into fiat currencies at checkout when making purchases, revealed a report from Reuters. Customers eligible for this service include those who hold Ether (ETH), Bitcoin (BTC), Litecoin (LTC), and Bitcoin cash (BCH) in their PayPal digital wallets.
In October, PayPal gave its users the ability to sell, buy, and hold digital assets, and this crypto checkout service is building on this ability. Speaking to Reuters, PayPal President and CEO Dan Schulman said, “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.”
This service will attract no transaction fee for a crypto checkout. Also, each purchase will only use one type of coin.
Accelerating the Widespread Adoption of Bitcoin
Since the beginning of 2021, Bitcoin has increased to almost twice its value. This boost is a result of the growing interest from top financial firms which have seen the digital asset as a hedge against inflation. However, due to its high volatility, Bitcoin is yet to attain a level of being a widespread form of payment.
With this crypto checkout service, PayPal hopes to help Bitcoin attain greater adoption. Merchants will not bear the volatility risk in this service as transactions will be settled in fiat currency.
Schulman added, “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.”
With this offering, PayPal has become one of the biggest mainstream payment companies to embrace the use of digital assets. By offering full crypto services, PayPal Holding Inc has helped to promote a rally in the prices of virtual coins.
Recently, PayPal announced they’ve acquired crypto custody platform Curv to further its ambition of offering crypto services to its consumers.
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