PayPal will allow customers in the United States to use their cryptocurrency holdings to pay online stores across the world.
In an article released before the official announcement, Reuters reports that PayPal will let users pay with bitcoin (BTC), ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). The mechanism is called “Checkout with Crypto.”
The integration is automatic and will appear for users if they have enough crypto holdings to cover the cost.
PayPal introduced cryptocurrency trading on its platform last year with trades soaring at the beginning of 2021. At the time, it said a payment solution would likely launch this year.
PayPal will likely confirm this news with an announcement later today. However, it’s confirmed that the 29 million merchants who use the payment system will be brought in line with this new service.
It works by converting holdings into U.S. dollars at checkout. This incurs no extra transaction fees. However, if you’re needing to convert dollars to another currency, there is an added expense.
In addition, only one type of cryptocurrency can be used per transaction. This means you can’t gather your coins to pay for your items.
This is a huge step in the push for cryptocurrencies to be accessible payment methods. It aims to be as seamless as current fiat currency payment solutions like credit cards.
Although it’s initially only rolling out in the U.S., the company’s FAQ page states that it plans to expand its cryptocurrency offering to select global markets in the first half of 2021.
PayPal Joins Rise in Crypto Payments
Cryptocurrencies, especially bitcoin, have seen an increase in interest over the first few months of 2021.
Significant investment by companies has spurred speculation about trust and stability for the volatile market.
However, much of this has been investing in value preservation rather than in their utility. Payment with cryptocurrencies has been an uphill battle, especially in the face of fluctuating value.
The launch of this payment mechanism follows Tesla’s recent announcement that it will also accept Bitcoin as payment. In addition, Visa just announced it will allow settlement of payments using the stablecoin USDC on its network.
This kind of backing may help in pushing digital currencies into mainstream acceptance.