PayPal Holdings Inc. (NASDAQ:PYPL) has onboarded cryptocurrencies to its platform allowing its US customers to buy, hold and sell cryptocurrencies through their PayPal accounts. This is the first step in what is an ambitious move by the payment processing firm to bring virtual currencies mainstream. Most importantly, the company will soon allow its customers to use virtual coins to make purchases across its 28 million merchants.
Paypal account holders can now buy, hold and sell crypto
Equally, cryptocurrencies such as Bitcoin, Litecoin, and Ethereum are coming to the Venmo App for P2P transactions later in 2021 and opening the service to other countries. Over the past year, there has been a surge in Bitcoin price which two weeks ago soared above $40,000 before dropping to around $32,000. PayPal will get a cut from crypto transactions through its app and this could boost revenue growth above the company’s current projections.
Dan Schulman, the company’s CEO said that kit was a matter of time before onboarding crypto. It seems the time is here thanks to the COVID-19 pandemic which has accelerated the adoption of digital payments. In a statement, Schulman said that the shift into cryptocurrencies is inevitable and it brings several advantages in terms of financial access and inclusion, payment systems’ speed and resilience, efficiency, and the government’s ability to distribute stimulus packages to citizens.
PayPal to drive mainstream adoption of crypto
According to Schulman, the company’s global reach, two-sided network, digital payments expertise, and comprehensive security and compliance controls give PayPal an opportunity and responsibility to facilitate understanding, interoperability, and redemption of cryptocurrencies. He said that PayPal is ready to work with regulators across the world to offer support and meaningfully contribute to shaping cryptocurrencies’ role in the future of global commerce and finance.
PayPal will be an intermediary in making crypto mainstream as it will act as a link between merchants and consumers. One can buy and store crypto in their PayPal accounts and use the coins to make online or store purchases. Paypal will convert the crypto and pay merchants in fiat currencies.