PayPal allows its users to pay with crypto
The news were first released today in the morning by Reuters, but have already been confirmed by PayPal itself. The gigantic payment platform decided to allow for cryptocurrency payments for its US users for all 29 million merchant stores all around the world. Users from other countries should have this option later this year. According to many, this can potentially mark the beginning of mass adoption of cryptocurrencies as a means of payment. This view is for example represented by CEO of PayPal Dan Schulman.
“This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside you PayPal wallet. 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.”
According to the news, PayPal will not charge any transaction fees on the cryptocurrency payments. Moreover, it specified that the purchases can now be done with 4 cryptocurrencies (Bitcoin, Ethereum, Litecoin and Bitcoin Cash). There is not a possibility of paying one bill or transaction with two different cryptocurrencies at the same time, which however is very logical and easily understandable step.
PayPal also specified that it will always transfer the money to the merchants in fiat, meaning that even after the cryptocurrency transaction is done, PayPal will convert the cryptocurrencies at given rate to fiat currencies, which will be then send to the merchants. This should protect them from the volatility that is now closely related to the cryptocurrency world. This is also a different approach than Tesla, for instance, since the e-car company plans to keep the bitcoins it gets as a means of payments, whereas PayPal will always convert the cryptocurrencies to the fiat.