Online payment giant PayPal will accept cryptocurrency as a medium of exchange with its millions of global merchants, the company’s president and CEO said on Tuesday ahead of an official announcement.
There was news of PayPal’s alleged decision to accept cryptocurrencies early on March 30th. Later in the day, the company’s CEO Dan Schulman confirmed to Reuters that the rumors were true and that an official statement would be released immediately.
The new system is expected to have a crypto checkout service, which allows users to pay for goods and services from approved providers with their stored coins. The system will reportedly see merchants receiving equivalent funds directly in fiat currency after coins undergo a quick transfer at the time of sale.
The checkout service is expected to be available at launch for all four PayPal-supported cryptocurrencies, which consist of Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). Customers who pay with cryptocurrencies do not incur any transaction fees for purchases and only one coin can be used per purchase.
“We believe this will be a transition point where cryptocurrencies will move from being an asset class primarily bought, held, and / or sold by you to a legitimate source of funding for real-world transactions with millions of merchants,” Schulman said of the Start .
In October 2020, when PayPal’s intention to break into the crypto space was first announced, Mike Novogratz, CEO of Galaxy Digital, called it “the shot that’s heard around the world” as Wall Street would get the news. PayPal made further penetration into the industry in early March when it acquired $ 200 million worth of digital asset security company Curv.
The PayPal messages come just 24 hours after Visa announced it was testing a new payment system using stablecoins on the Ethereum blockchain. As part of the pilot project, the participating dealers agree to use the USDC stablecoin to process customers’ fiat transactions.