PayPal now allows its United States-based users to buy, sell, and hold cryptocurrency through its platform. The corporation enabled the new feature on Thursday after announcing it would enter the digital coin market in October.
The firm also raised its weekly trading limit to $20,000, double the amount it initially stated due to popular demand.
PayPal’s US Cryptocurrency Features
PayPal subscribers can access its new digital coin offering through its mobile and web applications. Through the program, users can trade Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. Its cryptocurrency section also includes several articles about the nature of online tender and the varieties it hosts.
Basically, the firm provides a quality primer on digital coins that can be consumed in the time it takes to watch an episode of “The Queen’s Gambit.”
PayPal’s new service also lists the U.S. dollar exchange rates of the cryptocurrencies it hosts. Users can see how volatile Ethereum has been within a day, week, month, six months, 12 months, and all-time. Purchases can be completed in just a few clicks, and sales are similarly uncomplicated. Once a transaction is completed, members can check the value of their digital assets alongside their balance and credit holdings.
For the uninitiated, the service makes diving into the cryptocurrency market incredibly easy.
TechCrunch reports PayPal has also sweetened the pot by waving its digital coin transaction fees until 2021. Next year, the corporation will charge $0.50 on transactions from $0 to $24.99. It will also claim a small percentage of purchases and sales over that amount, with the fee de-escalating based on the transaction’s size.
The payment services company is also not charging its users for holding cryptocurrency.
Future Expansion Plans
PayPal launched its new cryptocurrency with a simple press release update, but it has big plans for the service. For one thing, it will expand its new service “to select international markets” in 2021.
The corporation will also enable its members to use digital coins as a funding source for the on-platform transactions. Thanks to some smart backend engineering, the process of receiving cryptocurrency payment should go seamlessly for merchants. Once a transaction between the buyer and seller is settled, it will be converted to fiat currency.
That enhanced availability and functionality could go a long way to mainstreaming cryptocurrency.
Similarly, the firm has also made an effort to legitimize its cryptocurrency offering with regulators. It secured a conditional BitLicense from the New York State Department of Financial Service last month. Its decision to work with the government before announcing its plans probably helped avoid some of the scrutiny Facebook received for its Libra digital coin plans.
As of the third quarter, PayPal had 361 million users and 28 million merchants worldwide. If the public begins using online assets to cover their Red Bull, Netflix, and DoorDash expenses, cryptocurrency will cease being an emerging technology. It will simply become the new way people pay for everything.