PayPal Now Allows US Customers to Pay with Crypto at its 29 Million Merchants
PayPal Holdings, the payments giant, is ready to start allowing its US consumers to use cryptocurrencies to pay at its millions of online merchants globally.
Users will now be able to convert their cryptocurrencies in PayPal digital wallets into fiat currencies at checkouts to make purchases.
“This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside your PayPal wallet,” President and CEO Dan Schulman told Reuters.
While mainstream media and detractors say Bitcoin is not a currency and using an appreciating store of value that has surged over 14.5x from last March for payments doesn’t really make sense, more and more companies are taking this route.
Last week, Tesla announced that it now accepts bItcoin as a form of payment, which the company plans to hold instead of converting it into fiat currency.
PayPal actually hopes to make crypto a widespread form of payment, despite its volatility. The company won’t be charging a transaction fee to checkout with crypto assets, and only one type of coin can be used for each purchase, it said.
“We think it is a transitional point where cryptocurrencies move from being predominantly an asset class that you buy, hold and or sell to now becoming a legitimate funding source to make transactions in the real world at millions of merchants,” Schulman said.