PayPal: US customers can shop with bitcoin

US customers will soon be able to pay with crypto on PayPal, its president and CEO has confirmed.

PayPal: US customers can shop with bitcoin

Online payments giant PayPal now plans to accept cryptocurrencies as a medium of exchange at its merchants around the world, the company’s president and CEO revealed on Tuesday ahead of an official announcement.

News of PayPal’s decision to Bitcoin Sunrise accept cryptocurrencies, which was still considered a rumour, became public on 30 March. The company’s CEO Dan Schulman confirmed to Reuters that the rumours were true and that an official statement would be released shortly.

The new system is expected to offer a cryptocurrency checkout service where users can pay for goods and services with their coins at participating merchants. The system will allow merchants to receive equivalent funds directly in fiat currency, as coins will only be used briefly for quick transfer when selling.

The point-of-sale service is expected to be available at launch for all four cryptocurrencies supported by PayPal. These four are Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). For customers paying with cryptocurrencies, there are no transaction fees for purchases. Only one coin can also be used per purchase.

„We think this is a transition point where cryptocurrencies are moving from an asset class that you buy, hold and or sell to a legitimate source of funding. Namely, you can now use them to transact in the real world with millions of merchants,“ Schulman said at the launch.

PayPal first announced its intention to enter the crypto space in October 2020

Mike Novogratz, the CEO of Galaxy Digital, described it as „the shot that went around the world“. He was referring to how Wall Street would take the news. PayPal got serious about its plan in early March. The company has now acquired digital asset security firm Curv for $200 million.

A day earlier, Visa announced it would test a new payment system using stablecoins on the Ethereum blockchain. As part of the pilot, participating merchants agreed to process their customers‘ fiat transactions with the USDC stablecoin.