PayPal Digital Wallet Lets Users Buy, Hold, Sell Cryptocurrency
PayPal announced today that the company will now let US account holders buy, hold, and sell cryptocurrencies directly in the PayPal app. Users will be able to trade Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
The new service is available only to PayPal users in the United States. Although PayPal users will be able to use the app as a cryptocurrency wallet, they won’t be able to pay merchants using their cryptocurrency balances just yet. In October, the company stated that this is just the first step toward giving PayPal users the ability use their cryptocurrency balances to pay merchants that accept PayPal.
PayPal Holdings, Inc. (NASDAQ: PYPL) says the new service will expand to include Venmo users next year. In addition, the company has plans to extend the feature to select international markets in the first half of 2021.
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“The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly,” said Dan Schulman, president and CEO, PayPal
PayPal Digital Wallet
Paying with a digital wallet is one of the best ways to keep your payment card information and bank accounts secure. When you use a digital wallet rather than presenting a physical payment card at a point-of-sale terminal or online at an eCommerce store, your card numbers are completely protected as the merchant does not receive the full card number. Digital wallets generate a temporary token and uses either Bluetooth or near field communication to keep your transaction private from the merchant. Since the merchant never sees your full payment card number, your credit cards and bank card cannot be compromised.
Even better, you can load your cards into a digital wallet and leave them at home. So, there is not chance you’ll forget your card at the store.
Using a digital wallet is a simple is holding up your phone and scanning a QR code or barcode at a payment terminal . It is completely touch free keeping you safe from germs and protecting your card from credit card skimmers.
The PayPal app or digital wallet is one of the most widely used digital wallets in the world. Other competing digital wallets include Apple Pay, Google Pay, and the Samsung Pay.
NYDFS Greenlights PayPal
PayPal was granted a conditional Bitlicense by the New York state Department of Financial Services (NYDFS). the service is available through a partnership with cryptocurrency products and services provider Paxos Trust Company Does the press release.
“NYDFS will continue to encourage and support financial service providers to operate, grow, remain and expand in New York and work with innovators to enable them to germinate and test their ideas, for a dynamic and forward looking financial services,” said Linda A. Lacewell, superintendent, NYDFS.
Paying in Cryptocurrencies with PayPal
For now, PayPal users can buy, sell, and hold cryptocurrencies. In early 2021 they will be able to use their cryptocurrency balances as a funding source for paying PayPal merchants. PayPal says that users will be able to pay merchants from the crypto count cryptocurrency balances. However, the coins will first be converted to flat currencies (like US dollars) with no incremental fees. Merchants will not have additional integrations needed to accept cryptos or incur transaction fees. This makes the cryptocurrency held inside the PayPal digital wallet simply another funding source like a credit card, debit card, or bank account.
