PayPal has partnered with cryptocurrency company Paxos to launch a new service. PayPal users in the US will soon be able to buy, store and sell cryptocurrencies.
They will be able to operate not only with Bitcoin, but also Ethereum, Bitcoin Cash and Litecoin.
In addition, in the future, it will be possible to pay for purchases using cryptocurrency at 26 million stores using PayPal gateway.
PayPal will work with multiple exchanges to provide digital money services. Coinbase and Bitstamp may be among them, but both declined to comment this news.
By early 2021, PayPal wants to allow you to use your cryptoassets as a funding source to make purchases on PayPal. This way you can use the cryptocurrency for everyday purchases without having previously convert the cryptocurrency on the exchange.
How will it affect e-commerce sellers?
There are 26 million merchants are integrated with PayPal worldwide. For these sellers, customers paying with crypto will have no impact. Everything will be converted to fiat currency upon completion of the transaction.
Very soon everyone will be able to access cryptocurrency-related functions.
The company has already updated information on fees for transactions with cryptocurrency on its official website. The fees will be as following - 2.3% for transactions below $100, 2% for all transactions between $100 and $200, 1.8% for transactions between $200 and $1,000 and 1.5% for transactions above $1,000. It is a bit higher than standard market price.
Other fintech companies and crypto industry
It is worth noting that some other companies in the financial sector also have started to pay more attention to digital assets. Earlier this month, US company Square, which develops solutions for accepting and processing digital payments, acquired 4,709 bitcoins for $ 50 million, stating that the cryptocurrency could become "a more common currency" in the future.
In August, investment holding Fidelity launched its first Bitcoin-focused fund.
As for the first cryptocurrency, since the beginning of 2020 its value has increased by about 75%. In March, the bitcoin rate dropped to $ 3800, but since then it has been growing steadily.
In early June, Microsoft announced the launch of a decentralized identifier (DID) network, which operates, in particular, on the bitcoin blockchain. ION technology allows users to create digital accounts. These are, for example, driving licenses or social media accounts.
What do you think about the future of PayPal and the new opportunity to pay with cryptocurrency? I would be happy to answer any questions or submit your project to my team at Astorts Group for evaluation.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.