PayPal will announce later on Tuesday that it has enabled US consumers to use their cryptocurrency holdings to pay millions of its online merchants worldwide, This could significantly boost the use of digital assets in day-to-day trading.
Customers who keep Bitcoin, Ether, Bitcoin Cash, and Litecoin in PayPal digital wallets can now convert their holdings of fiat currencies at the checkouts to make purchases.
The service that PayPal was working on late last year will be available to all 29 million merchants in the coming months.
As the Company Said “This is the first time that you can seamlessly use cryptocurrency like a credit card or debit card in your PayPal wallet,” President and CEO Dan Schulman told Reuters before an official announcement.
Checkout with Crypto is based on the ability of PayPal users to buy, sell, and hold cryptocurrencies, which the San Jose, California-based payment company launched in October.
The offer made PayPal one of the largest financial companies to open its network to cryptocurrencies and helped boost prices for virtual currencies.
Bitcoin’s value has almost doubled since the beginning of this year, driven by increased interest from larger financial firms looking to increase adoption and view this as a hedge against inflation.
PayPal launches less than a week after Tesla announced it would start accepting. Bitcoin payments for your car – Unlike PayPal transactions, where merchants receive fiat currencies, the bitcoin will still be used as a payment method, according to Tesla.
Although the emerging asset is gaining traction among top investors, it has yet to become a common payment method, in part because of its persistent volatility.
PayPal hopes their service can change this as merchants do not bear the risk of volatility by processing the transaction in fiat currency.
“We believe this is a transition point where cryptocurrencies move from being an asset class primarily bought, held or sold by you to a legitimate source of funding for real-world transactions with millions of merchants,”.Schulman Said..
The company doesn’t charge any transaction fees for paying with crypto and only one type of currency can be used for each purchase, he said.