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PayPal adds crypto payments to its 29 million merchants

Photo of: Nathan VDH
by Nathan VDH

After trading, PayPal adds the payment brick to its crypto service. With “Checkout with Crypto”, PayPal allows US consumers to pay for their purchases in BTC, BCH, ETH and LTC from their wallet.

It is now official. And it’s not a surprise. Since the launch of its cryptocurrency buying and selling service in late 2020, PayPal has been clear about its intentions. The firm’s goal is indeed to democratize crypto payments.

PayPal is therefore adding a new stage to its rocket in this sector through the launch of “Checkout with Crypto”. And the principle could not be simpler. PayPal’s e-wallet offers different payment methods.

So now there is an additional one. American users of PayPal, and only them for the moment, have the possibility to pay for their purchases with the network’s merchant clients.

According to the firm, there are already millions of businesses that accept payments in cryptocurrencies. This number will continue to grow in “the coming months”. For merchants, the transaction is transparent. It is done in dollars. The crypto-fiat conversion is invisible and at no additional cost.

Recall that these settlements can be made, as desired, in Bitcoin, Bitcoin Cash, Ether or Litecoin. But only one crypto per transaction, the service provider clearly states in its terms of use.

For PayPal, the philosophy behind the service is simple: “The introduction of Checkout with Crypto is part of our commitment to drive the adoption of cryptocurrencies by the general public,” says CEO Dan Schulman.

It’s also about offering “PayPal customers the choice and flexibility of payment methods they can use with the PayPal wallet. “For now, the service is only available in the United States.

And the reason is obvious. To pay with cryptocurrencies, a PayPal wallet must first be funded with crypto. This necessarily involves purchasing from the company. PayPal does not indeed allow the transfer of digital assets from an external wallet to its own.

The purchase, storage and sale of crypto are available exclusively in the US, and from the firm. Last year, the company announced its intention to launch this service internationally. The same will be true for crypto payments.

“Allowing cryptocurrencies to make purchases in businesses around the world is the next chapter in the ubiquity and mass acceptance of digital currencies,” says Dan Schulman.

This announcement by PayPal contributing to the democratization of crypto-assets benefits their valuation. After its formalization, the main crypto market recorded an increase. Bitcoin, which was at half-mast last week, is now back up near $60,000.