Last Updated: April 6, 2021
In 2020, PayPal allowed users to buy, hold, and sell digital currencies. Now, the online payments system is launching its “Checkout with Crypto” feature.
PayPal, Inc. announced on Tuesday that its customers can now purchase goods and services using Bitcoin and other cryptocurrencies. This means all of its 29 million merchants across the globe will start accepting digital assets in the coming months.
This will initially only be available to US customers, but, naturally, it will soon expand to Europe and other parts of the world. Basically, it’ll allow users to convert their digital holdings into fiat currencies such as dollars and euros with no extra fees involved.
Dan Schulman, the company’s president and CEO, said that “еnabling cryptocurrencies to make purchases at businesses around the world is the next chapter in driving the ubiquity and mass acceptance of digital currencies.”
Indeed, digital assets are going mainstream, and the most recent cryptocurrency statistics suggest the same. The launch of cryptocurrency as a PayPal payment method will only speed up the process.
Since the start of 2021, Bitcoin has nearly doubled in value. One of the reasons was the increased interest from financial giants who are betting on its wide adoption. However, this digital currency is yet to become a widespread payment method. That’s partially due to its continued volatility. With this move, PayPal might just change that. As all of its transactions will be settling in fiat currencies, merchants won’t have to take the volatility risk.
According to Schulman, cryptocurrency is “becoming a legitimate funding source to make transactions in the real world at millions of merchants.”
It’s not only the folks at PayPal who are optimistic about the future of crypto. Kraken founder and CEO, Jesse Powell, said that “by the end of the year it will be one Bitcoin per Lambo, and probably by the end of next year it will be one Bitcoin per Bugatti.”
The world of digital currencies has suddenly started to resemble a gold rush. PayPal entering the race isn’t a surprise.
This isn’t the firm’s first venture into the world of crypto. PayPal was initially a partner in Facebook’s cryptocurrency Libra (now Diem) but it was the first to drop out.
The news about the company’s new feature arrived just over a month after Tesla announced it bought $1.5 billion in Bitcoin. The company has already made roughly $1 billion in paper profits from that investment. It is on a trajectory to make even more.