Can You Buy Bitcoins with PayPal? A Comprehensive Guide

Can I buy crypto with PayPal? Yes PayPal has a cryptocurrency service enabling its US and UK customers to buy, hodl and sell bitcoin and other cryptocurrencies directly from their PayPal account.

PayPal is an American online payment and money transfer platform. Apart from using PayPal to buy bitcoin directly on PayPal, individuals from Germany and the UK can now also use PayPal to buy Bitcoin and other cryptocurrencies via the well-known exchange Coinbase.

PayPal initiated its crypto services in October, and on November 13th, 2020, it removed the waitlist period, granting access to cryptocurrency for all eligible U.S. customers. Collaborating with Paxos, a move towards this initiative was made by the payments giant. There are intentions to extend these services to Europe and other regions as well.

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.

How PayPal Cryptocurrency Works

In June 2022, PayPal announced that it is now possible to move cryptocurrency off its platform to external cryptocurrency wallet and exchanges. This feature was not available before.

PayPal crypto works with the Paxos Trust Company, an American provider of cryptocurrency products and services, to provide this service in the US. PayPal supported cryptocurrencies are Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. To help you understand the crypto ecosystem, risks and opportunities, PayPal provides you with educational content.

Make payments using Bitcoin

US customers who hold Bitcoin, Ethereum, and Litecoin in PayPal wallets can also convert their cryptos to fiat currencies at checkouts to make online purchases. With PayPal crypto services, you can use cryptocurrencies to shop at the 26 million merchants on its network. Merchants will have no additional system integration to accept your payment. But, you will be able to instantly convert your selected cryptocurrency balance to fiat currency.

Cryptocurrency payments on PayPal will be settled using fiat currencies, such as the U.S. dollar and GBP, meaning merchants will not receive payments in cryptocurrencies. Therefore, you cannot make PayPal payments directly in Bitcoin. You will first have to sell your cryptocurrency for fiat currency to make payments.

Withdraw to your personal wallet

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 to themselves. It is also possible however to withdraw your private holdings to your personal wallet addresses or to deposit even. To understand this topic better, please also take a look at our article about What is the Best Wallet for Cryptocurrency?.

There can be several factors though that could result in the cryptocurrency transfer feature being disabled on your PayPal account, including if you have a negative outstanding account balance and pending cryptocurrency purchases. Cryptocurrency acquired via a debit card purchase is typically available for immediate transfers. There is also a weekly limit of $10,000 for cryptocurrency transfers for US citizens. This limit applies to all types of transfers, including internal transfers to other PayPal accounts, external transfers, or any combination of these transfer types.

To ensure the smooth operation of cryptocurrency transfers on your PayPal account, make sure your account has a positive balance, and allow time for pending cryptocurrency purchases to clear. Should you encounter any difficulties, don’t hesitate to reach out to PayPal’s customer support for further assistance.

PayPal Crypto UK

The introduction of PayPal cryptocurrency in the UK is the first expansion outside the US. The new PayPal cryptocurrency service in the UK allows you to buy or sell cryptocurrency worth up to £15,000 per transaction and £35,000 a year.

If something goes wrong with your PayPal cryptocurrency transaction, you won’t be able to use the UK Financial Ombudsman Service, the European Consumer Center or have the protection of any UK or Luxembourg Financial Services Compensation Scheme. However, to facilitate the cryptocurrency service, PayPal also provides electronic money and payment services which are regulated.

PayPal Crypto Fees

The PayPal crypto transaction fees are based on how much cryptocurrency you buy or sell. The exchange rate you’ll see before buying or selling crypto will also include a cryptocurrency conversion spread. There is no fee for holding crypto in your account.

PayPal Cryptocurrency Fees USFee
1.00 – 24.99 USD0.50 USD
25.00 – 100.00 USD2.30%
100.01 – 200.00 USD2.00%
200.01 – 1000.00 USD1.80%
1000.01 USD +1.50%
PayPal Cryptocurrency Fees UKFee
1.00 – 24.99 GBP0.50 GBP
25.00 – 100.00 GBP2.30%
100.01 – 200.00 GBP2.00%
200.01 – 1000.00 GBP1.80%
1000.01 GBP +1.50%

paypal crypto

Is PayPal Cryptocurrency Safe?

PayPal crypto service in the US is provided in partnership with Paxos Trust Company, which is regulated by the New York State Department of Financial Services. PayPal has conditional cryptocurrency license, “Bitlicence,” from the New York State Department of Financial Services. The PayPal cryptocurrency service in the UK is provided by PayPal (Europe) S.à r.l. et Cie, S.C.A.. PayPal’s cryptocurrency service is not regulated by the UK Financial Conduct Authority (FAC) or the Luxembourg Commission de Surveillance Du Secteur Financier.

In April 2021, PayPal expanded crypto services to its mobile payment and digital wallet service, Venmo. For more information, take a look at Our Complete Review of Venmo Mobile Payment and Digital Wallet Service

To learn more about PayPal’s cryptocurrency services, you can check out PayPal help pages on this topic

Our goal

We want to inform you about the latest banking trends and developments, by providing comprehensive reviews of banks around the world offering virtual banking services and bitcoin based banking.

Our aim is to help you know the best bank accounts, how to open a bank account, best banks to invest and buy bitcoin, how to apply for payment and virtual cards, how to open a non-resident bank account in the US or EU, how to earn a passive income with your crypto, obtain a loan with your crypto deposits, and many other banking-related topics.