Posted 2 weeks ago | by Catoshi Nakamoto
Paypal has announced that it has started allowing U.S. consumers to use their cryptocurrency holdings to pay at millions of its online merchants.
Last year, Paypal added the ability to buy, hold and sell cryptocurrency, while pledging during Q1 of this year to enable select cryptocurrencies as a payment method across its 20 million-plus online merchants, Bitboy Crypto reported.
The service which is being dubbed, “PayPal’s Checkout with Crypto” will allow Bitcoin (BTC), Ether (ETH), Bitcoin cash (BCH) and Litecoin (LTC) to be easily converted into U.S. dollars or other fiat currencies when making purchases, the same way as a credit card or a debit card would work inside a PayPal wallet, said PayPal. This means merchants will not actually be the recipients of cryptocurrencies.
Calling it “a new way for businesses to get paid,” the checkout service is all about driving mainstream adoption of cryptocurrencies, said PayPal CEO Dan Schulman.
“Enabling cryptocurrencies to make purchases at businesses around the world is the next chapter in driving the ubiquity and mass acceptance of digital currencies,” Schulman said in a statement.
PayPal said that it won’t charge a transaction fee for consumers checking out or merchants. Adding, that a conversion spread will be built into the conversion from crypto to U.S. dollars, Market Watch reported.
PayPal previously rolled out the ability for users to buy, sell, and hold cryptocurrencies, working with Paxos Trust Company, a virtual-currency provider that maintains the crypto holdings of PayPal customers. PayPal has also recently purchased Curv after attempting to acquire BitGo in 2020 and failing after the deal fell apart.
Curv helps companies transfer and store digital currencies which could be a sign that Paypal may soon allow users to withdrawal cryptocurrencies they purchase. PayPal’s crypto offering has been limited, with the payment giant failing to give users control over their own private keys.
Watch Ben of Bitboy Crypto explain in the video below what this news means for cryptocurrency!
Bitcoin is currently trading at [FIAT: $58,680.54] UP +1.5% in the last 24s according to Coingecko at the time of this report.