PayPal announced yesterday that its US customers can now use cryptocurrencies to pay for products and services at millions of its online merchants worldwide
Online payment giant PayPal announced yesterday that it has enabled US customers to use cryptocurrencies to pay for goods and services at millions of its online checkout terminals.
The company stated that customers who have Bitcoins (BTC), Ether (ETH) or Litecoins (LTC) in PayPal digital wallets can use them to pay for services at any PayPal point of sale terminal. The funds would be converted into fiat currencies at the checkouts to ensure smooth purchases.
President and CEO Dan Schulman told Reuters ahead of the official announcement: “This is the first time you can seamlessly use cryptocurrencies like a credit card or debit card in your PayPal wallet.”
The move is expected to boost cryptocurrency adoption in the e-commerce space as PayPal is used in over 26 million stores worldwide. PayPal introduced this feature after declaring support for cryptocurrencies last year. The company began enabling users to buy, sell, and hold cryptocurrencies in October.
Entry into the crypto space made PayPal one of the leading mainstream financial companies adopting cryptocurrencies. Indirectly, the introduction of PayPal has helped BTC and Altcoins lead to all-time highs in recent months.
The leading cryptocurrency is up nearly 500% since October 2020 when it traded just above the $ 10,000 mark. It hit an all-time high of $ 62,000 a few weeks ago after rising more than 100% since the start of the year.
The introduction of cryptocurrencies by major financial companies like Visa, PayPal, Morgan Stanley, and others has helped raise the price in recent months. Wealthy institutional clients now view Bitcoin as a hedge against inflation and continue to find ways to get exposure to the top digital currency.
Schulman said the company thinks cryptocurrencies can be used for real transactions. “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.”, he added.
PayPal does not charge any transaction fees when checking out with crypto and only wants to accept one type of cryptocurrency per purchase.