On October 21, 2020, PayPal announced the launch of PayPal cryptocurrency service enabling its customers to buy, hold and sell bitcoin and other cryptocurrencies directly from their PayPal account. PayPal is an American online payment and money transfer platform.
PayPal began crypto offerings in October and lifted the PayPal crypto waitlist period in November 13th 2020, making crypto available to all eligible U.S. customers. The payments giant partnered with Paxos for the initiative. It plans to expand its services to Europe and elsewhere.
PayPal has obtained a conditional cryptocurrency license, called “Bitlicence,” from the New York State Department of Financial Services. The license will initially allow purchases of Bitcoin, Ethereum, Bitcoin Cash and Litecoin. You can buy your BTC’s with paypal directly through Paxful.
PayPal hopes the service will encourage global use of virtual coins and prepare its network for new digital currencies that may be developed by central banks and corporations.
PayPal crypto will work with the Paxos Trust Company, an American provider of cryptocurrency products and services to provide this service. To help account holders understand the crypto ecosystem, risks and opportunities, PayPal will provide them with educational content.
According to PayPal’s announcement, Cryptocurrency payments on PayPal will be settled using fiat currencies, such as the U.S. dollar, meaning merchants will not receive payments in virtual coins.
The service will start in the coming weeks with U.S. account holders. It will then expand to Venmo, PayPal’s mobile payment platform, and some countries in the first half of 2021. Moreover, PayPal customers will also be able to use cryptocurrencies to shop at the 26 million merchants on its network starting in early 2021. Merchants will have no additional system integration. Account holders will be able to instantly convert their selected cryptocurrency balance to fiat currency.
- US customers who hold bitcoin, bitcoin cash, ether and litecoin in PayPal wallets will now be able to convert their cryptos to fiat currencies at checkouts to make online purchases.
Not your keys, Not your bitcoin. If you buy bitcoin and other cryptocurrencies via PayPal, PayPal owns your bitcoins on your behalf because the payment platform keeps the private keys.
There are no service fees when buying or selling cryptocurrency through December 31, 2020, and there are no fees for holding cryptocurrency in a PayPal account. PayPal merchants will have no additional fees because all transactions will be settled with fiat currency at their current PayPal rates.
To learn more about PayPal’s cryptocurrency services, click here