PayPal has now allowed crypto payments. It will allow consumers to pay with cryptocurrency when they check out. The payments behemoth also has huge aspirations for NFTs.
On November 18, PayPal released an upgrade to its PayPal app targeted at crypto users on its platform. Users can now use the app to buy, trade, and hold digital assets, as well as interact with the network’s many businesses.
PayPal entered the cryptocurrency sector last year. It introduced its own trading platform in November 2020. Although limited only to the US market, the firm received a significant reaction.
PayPal has since expanded its crypto offerings by bringing on other stakeholders. PayPal’s new upgrade also pushes retailers on its platform closer to the crypto ecosystem. As a result, consumers will now be able to pick cryptocurrency at the checkout for limited items.
Currently, PayPal supports four cryptocurrencies on its platform. Namely, Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash. PayPal also imposes several requirements for customers who want to use crypto as a payment method.
Users must fill out the W9-tax form on the app ahead of time. Furthermore, as long as consumers can pay in full, cryptos will be immediately offered as a payment choice. PayPal will convert the cryptocurrency amount into USD or any other currency before paying the merchant.
What is Paypal?
PayPal is an American e-commerce firm founded in March 2000 that specialises in online money transactions. From 2002 to 2015, eBay utilised the Internet auction corporation that owned PayPal. Paypal was formed by combining X.com and Confinity. It allowed customers to make payments or transfer money between accounts in a secure online transaction.
After seeing PayPal’s rise to prominence, the online marketplace giant eBay purchased PayPal for $1.5 billion in October 2002. Users may link their PayPal accounts to their bank accounts. Hence, making transfers and payments more efficient than money orders or checks. eBay charges fees on specific transactions based on the amount, nature, and currency type of the transaction. PayPal became independent in 2015, although it was still utilised by eBay.
Paypal finally listening to market demand
It entered the cryptocurrency industry last year, citing high market demand. Its crypto business grew, as it already has a large user base globally. In the quarterly reports, crypto trading was a sizable part of PayPal’s income.
In a recent podcast, Jose Fernandez, PayPal’s senior vice president, stated that high customer and merchant demand motivated them to enter the crypto market.
Fernandez also denied claims that PayPal was intending to launch in lectin. He believes that the industry has not yet developed the capability to enable high-value, low-volume transactions. The CEO went on to say that the majority of stablecoins on the market are helpful for trading or DeFi. Although these are fantastic use cases, PayPal is searching for stablecoins that it can use to make payments safer.
NFTs are one of the most significant areas in which PayPal has expressed interest. This year in 2021, the popularity of non-fungible tokens (NFTs) has soared. But, purchasing an NFT is not a simple procedure that PayPal is attempting to fix.
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