According to a recent article released by Reuters, PayPal will allow U.S. users to buy, sell and hold cryptocurrencies on their online wallets. In addition to these features, PayPal will allow customers to shop using cryptocurrencies in 2021. Given their volatile nature, crypto payments will be settled in fiat currencies and then transferred to the merchant.
This initially started as rumour in late June 2020, but has now been confirmed.
The “money going digital” trend is clear, therefore PayPal wants to be prepared for the shift and be ready to accommodate new digital currencies that may be developed by Central Banks or companies.
President and Chief Executive Dan Schulman stated: “We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role.”
PayPal will not be the first fintech company to offer crypto to consumers, companies like Square have already done that. However, PayPal has a much larger reach. In the second quarter of 2020, PayPal had 346 million active accounts. Additionally, the average PayPal users has close to $500 in their account and over 80% of online transactions are made using PayPal.