BY DAYO ADESULU, Editor-in-Chief, TheCheer
While Bitcoin goes mainstream with a global adoption by big key players in the digital currency sector, PayPal has gone ahead to enlightened its 346 million active accounts users around the world on Cryptocurrency.
PayPal Holdings Inc, which recently embraced and adopts cryptocurrency into its services has now taken the pain to answer some probing questions from its 26 million merchants worldwide.
On its website, PayPal stated that PayPal users in the U.S. can buy, sell and hold select Cryptocurrencies directly through PayPal using their Personal or Premier PayPal Cash/plus account. According to it, users will be able to learn about Crypto, track crypto prices, all without leaving the PayPal app. We plan to introduce this service to Venmo in 2021.
PayPal said for now, its customers in the U.S. (except Hawaii) can buy, sell and hold four different Cryptocurrencies on PayPal: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
It noted that at this time, buying and selling Crypto with PayPal is available in the U.S. (excluding Hawaii) and U.S. territories, and all trades must be executed in USD. We plan to expand this service to select global markets in the first half of 2021.
In order to use the PayPal platform, it said if you have a Personal or Premier PayPal Cash/plus account all you need to do is confirm some account information during your first purchase. ”If you do not have a Personal or Premier PayPal Cash/plus account, you can apply for one during your first purchase,” it said explained.
It said: ”If you use a linked bank account or debit card as a funding source to buy Crypto Assets, your bank may charge you its own fees, including overdraft fees or insufficient fund fees, if applicable. PayPal is not responsible for any fees that may be charged to you by your bank.
It however disclosed: ”PayPal’s Crypto fees are from the spread (or margin) between the market price we receive from our trading service provider (Paxos) and the exchange rate between US dollars and the Crypto asset displayed to the user, and a transaction fee when buying or selling crypto assets.
”At the time you buy or sell Crypto assets, we will disclose to you the applicable exchange rate and the number of fees that you will be charged for that transaction.
”The exchange rate may include an estimated spread of one-half of one per cent (0.50%), provided, however, that the actual spread may be higher or lower based on market conditions. We will not separately calculate or disclose the spread we earn on each transaction. By using PayPal’s Crypto services, you agree to pay all applicable exchange rates (including spread) and fees.
If you use a linked bank account or debit card as a funding source to buy Crypto Assets, your bank may charge you its own fees, including overdraft fees or insufficient fund fees, if applicable.
PayPal had on Wednesday, October 21 2020 officially confirmed it was entering the cryptocurrency market.
The payments giant, with 346 million active accounts around the world, pledged to make cryptocurrency “a funding source for purchases at its 26 million merchants worldwide.”
Among others, PayPal said buy, sell and hold features would be live within the next few weeks but for some users in 2020, the features were already available.
It noted that PayPal’s service would not allow bitcoin or other cryptocurrencies to be withdrawn or deposited, adding once you buy the coins, they stay in your account until you sell.
If at this announcement in 2020, the Bitcoin and other cryptocurrencies rallied now that it has gone to the mainstream, crypto enthusiasts and investors should expect an unprecedented boom in the industry.
PayPal said the emergence of the COVID-19 pandemic had necessitated the need for digital payments of all sorts, adding that the move had been in planning since at least late 2019.
According to PayPal, beginning in 2021, PayPal customers would be able to instantly convert their selected cryptocurrency balance to fiat currency, with the certainty of value and no incremental fees.
It vowed that Its merchants would have no additional integrations or fees, as all transactions would be settled with fiat currency at their current PayPal rates.
“In effect, cryptocurrency simply becomes another funding source inside the PayPal digital wallet, adding enhanced utility to cryptocurrency holders, while addressing previous concerns surrounding volatility, cost and speed of cryptocurrency-based transactions,” PayPal said.
In follow-up, the payments giant Paypal on 30 March 2021 launched the “Checkout With Crypto” service to allow consumers to make payments at millions of merchants using cryptocurrencies in their Paypal wallets.
“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,” said Paypal’s CEO.
According to Paypal Holdings Inc. the launch of a new service called “Checkout with Crypto.” is available at millions of global online businesses and continuing to expand over the coming months.
It explained that Paypal customers with cryptocurrency holdings in the U.S. would be able to choose to check out with crypto seamlessly within Paypal at checkout.
“Checkout with Crypto will automatically appear in the Paypal wallet at checkout for customers with sufficient cryptocurrency balance to cover an eligible purchase,” the announcement adds. “All transactions are settled in USD and converted to the applicable currency for the business at the standard Paypal conversion rates.”
Dan Schulman, Paypal’s president and CEO, told the news outlet ahead of a formal announcement, “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.”
Square’s chief financial officer, Amrita Ahuja said: “We believe that bitcoin has the potential to be a more ubiquitous currency in the future.’
“As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.”
Square said that cryptocurrency aligns with the company’s purpose in that it empowers people worldwide to participate in a global monetary system. The company has previously invested in bitcoin “from a product, leadership and legal innovation perspective.”
Recall that Square in 2018 introduced bitcoin trading with Cash App, and the following year launched the independent Square Crypto. Square also recently rolled out the nonprofit Cryptocurrency Open Patent Alliance (COPA).
Square was founded in 2009 in Silicon Valley and has offices in the United States, Canada, Japan, Australia, Ireland, Spain, and the U.K.
It was gathered that Cash App generated $875 million of bitcoin revenue and $17 million of bitcoin gross profit during the second quarter of 2020, up 600 per cent year over year. Comparatively, Square made $306 million in bitcoin revenue for Q1.