PayPal will announce later Tuesday that it has begun allowing US consumers to use their cryptocurrency funds to pay millions of their online merchants worldwide, a move that could significantly boost the use of digital assets in day-to-day trading. .
Customers who hold Bitcoin,, Ether, Money in Bitcoin and Litecoin in PayPal, digital wallets will now be able to convert their holdings into fiat currencies at cash registers to make purchases, the company said.
The service that PayPal revealed that running late last year, it will be available to all of its 29 million retailers in the coming months, the company said.
“This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or debit card in your PayPal wallet,” President and CEO And Shulman said Reuters before an official announcement.
Crypto payments are based on the ability of PayPal users to buy, sell and hold cryptocurrencies, which a payment company based in San Jose, California, launched in October.
The proposal made PayPal one of the largest traditional financial companies, which opened its network for cryptocurrencies, and helped rally in the prices of virtual coins.
Bitcoin has almost doubled in value since the beginning of this year, boosted by increased interest from larger financial companies, which are betting on greater acceptance and see it as a hedge against inflation.
The launch of PayPal comes less than a week later Tesla said it would start accepting bitcoin payments for its cars. Unlike PayPal transactions, in which merchants will receive fiat currency, Tesla has said it will hold bitcoin used as payment.
Yet, while the nascent asset is gaining popularity among major investors, it has not yet become a widespread form of payment, in part due to its continuing instability.
PayPal hopes that its service can change that, as by settling the fiat currency transaction, merchants will not bear the risk of volatility.
“We believe this is a transition point where cryptocurrencies move from a predominantly asset class that you buy, hold and sell to become a legitimate source of funding for real-world transactions with millions of traders,” Shulman said.
The company will not charge a fee for a crypto payment transaction and only one type of coin can be used for each purchase, the statement said.
© Thomson Reuters 2021
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