PayPal will now allow cryptocurrency payments
The U.S. digital payments company PayPal Holdings Inc. has now joined the cryptocurrency market, allowing users to buy, sell, and hold cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, and Litecoin using the online wallets.
According to the statement, in early 2021, PayPal customers will be able to shop at the 26 million merchants on its network using cryptocurrency.
President and Chief Executive Dan Schulman hopes that this service will promote the global use of virtual coins and prepare its network for the arrival of new digital currencies.
"We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role," Schulman said. “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,” he added.
U.S. account holders will be already able to buy, sell, and hold cryptocurrencies in their PayPal wallets in the coming weeks. However, the company plans to expand to Venmo and some other countries in the first half of 2021.
PayPal is certainly not the first company to accept Bitcoin. Such mainstream fintech firms as mobile payments provider Square Inc and stock trading app firm Robinhood Markets Inc have been already providing the possibility for their users to buy and sell cryptocurrencies. However, with 346 million active accounts and more than $222 billion in payments processed during Q2, PayPal's launch is remarkable given its vast reach.