- Payments giant PayPal has partnered with Paxos Crypto Brokerage to enable cryptocurrency buying and selling to its users.
- At launch, PayPal will allow purchases of Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
- Through Paxos, PayPal has been granted the first virtual currency conditional license from the New York State Department of Financial Services.
Digital payments behemoth PayPal will soon allow its customers to buy, hold and sell Bitcoin and several other cryptocurrencies directly via their accounts, the company announced today.
At launch, PayPal will allow purchases of Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
Although users will be able to pay with cryptocurrencies at around 26 million merchants in early 2021, the resellers will still receive the funds in the form of fiat currencies such as the US Dollar, the company noted.
“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 of PayPal.
He added that the company is eager to work with central banks and regulators around the world to offer our support and “to meaningfully contribute to shaping the role that digital currencies will play in the future of global finance and commerce."
“We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role,” Schulman added.
PayPal pals with Paxos for payments
In July, PayPal reportedly partnered with Paxos Crypto Brokerage to ship its crypto-centric payments service. Today, the companies officially confirmed their collaboration.
“Today is the first time users can purchase crypto assets directly from PayPal. PayPal is introducing the ability for its users to buy, hold and sell Bitcoin, Ethereum, Bitcoin Cash and Litecoin,” said Paxos CEO Charles Cascarilla in a press release shared with Decrypt.
— Paxos (@PaxosGlobal) October 21, 2020
“This news is significant because PayPal can drive increased awareness, education, adoption and utility for digital currencies. The PayPal global ecosystem has 346 million active accounts (including more than 26 million merchant accounts), and has the potential to significantly influence the size and reach of crypto markets in the years to come,” Cascarilla noted.
Within this partnership, Paxos Crypto Brokerage will provide crypto custody and trading, allowing PayPal to offer "crypto services seamlessly within the PayPal app with its simple and intuitive user experience.”
“Through Paxos, PayPal has been granted the first virtual currency conditional license from the New York State Department of Financial Services. Our dedication to regulatory licensing and consumer asset protection directly enables our clients’ ability to provide crypto to their customers,” Cascarilla further explained.
He added that initially, PayPal will offering crypto services to its US customers, but the company plans to add more geographies and features over time.
The news marks a significant about-face for PayPal; the payments giant has historically shied away from cryptocurrency, with limited options for buying crypto using the platform.