PayPal has partnered with Paxos to join the cryptocurrency market, and allow US customers to buy, sell, and hold bitcoin and other digital coins using the digital payments company’s online wallets.
PayPal is one of the largest global payment providers based in San Jose, California. It has 346 million active accounts around the world and processed $222 billion in payments in the second quarter.
Moreover, PayPal has got a conditional cryptocurrency license. From the New York State Department of Financial Services, commonly called the BitLicense. From early 2021, PayPal customers will be able to use crypto to shop. With 26 million dealers on its network using its app.
However, in an interview, PayPal President and Chief Executive Dan Schulman explained that the company encourages global use of cryptocurrency. Also, central banks and corporations prepare their network digital currencies.
“We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role.”
Furthermore, the company has updated its fees with more details on cryptocurrency exchange fees. However, the company will charge high fees on fiat-to-crypto and crypto-to-fiat exchange transactions.
In Spite of PayPal’s noteworthy launch. Other mainstream fintech firms, like mobile payments provider Square Inc and stock trading app company Robinhood Markets Inc, also allow users to buy and sell cryptocurrencies.
Many central banks have also expressed their intention to create digital currencies in the coming years, while Facebook Inc-led the development of a cryptocurrency project called Libra in 2019. However, PayPal was a creating member but dropped out after a few months.