PayPal Enters the Crypto Market- Crypto Payments Will Begin in 2021
October 21, 2020 5:46 pm
PayPal is one of the biggest global payment providers, with 346 million active accounts and $222 billion in volume processed in Q2 2020. It was one of the initial founding members of the Libra association, though it subsequently dropped out after regulatory pressure mounted for the project.
The Paypal partnered with Paxos to deliver the service, and it obtained a conditional cryptocurrency license from the New York State Department of Financial Services known as the BitLicense.
On October 21, PayPal announced to join the cryptocurrency market, allowing customers to buy, sell and hold bitcoin and other virtual coins using the U.S. digital payments company’s online wallets.
PayPal also affirmed the customers will be able to use cryptocurrencies to shop at the 26 million merchants on its network starting in early 2021 and for cryptocurrency payments, PayPal users will be able to purchase crypto directly through the app.
PayPal expects the service will boost global use of virtual coins and prepare its network for new digital currencies that may be developed by central banks and corporations.
“We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role”-Dan Schulman, President and Chief Executive.
The payments will be settled through fiat currencies, alike many existing crypto merchant solutions like BitPay, which means that the merchants will be receiving fiat, as PayPal will take care of the conversion.
The coins initially supported will include Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin ( LTC). PayPal also plans to support Bitcoin and other cryptocurrencies via its wallet and Venmo app from 2021. The announcement added to an already buoyant BTC trading environment, with $12,000 resistance evaporating overnight on Tuesday, Oct. 20.