Crypto Adoption on the Rise, PayPal will Offer Crypto Payments in 2021
In the digital era, companies are shifting toward digital means of communication. Banks have planned to introduce digital currency and then, there is PayPal who has announced crypto payments for its users.
On Wednesday, the enterprise announced its entry in the crypto industry. Multiple reports have confirmed this rumour yesterday. Now, users of PayPal can use cryptocurrencies for shopping at any merchant within PayPal’s network. The process will begin in 2021, as per the firm’s statement.
How will it settle payments since crypto is a digital asset with no physical existence? According to PayPal’s description, the transactions will be settled through fiat currencies just like other crypto dealers like BitPay. PayPal will take care of the conversion while merchants will receive fiat money.
PayPal is set to become a crypto wallet and accept crypto for payments in early 2021 https://t.co/Iki92Dl9kN
— Cointelegraph (@Cointelegraph) October 21, 2020
Upon introduction, the coins supported will include Bitcoin, Litecoin, Ethereum, and Bitcoin Cash. The company has obtained the license, commonly called BitLicense, from the New York State Department of Finacial Services, and the giant has also partnered with Paxos for service delivery.
Amid the crypto payments, users of the payment giant can also purchase crypto from the app. Hence, PayPal will be featuring cryptocurrency wallet, allowing the users to exchange in crypto through all PayPal apps.
PayPal is a global payment giant with 346 million active users and approximately $222 billion processed in the second quarter of 2020. Although the company dropped out due to stricter regulation, it is also among the founders of Libra association.