As the world continues down the digitization path, especially amid pressure stemming from the coronavirus pandemic, the popularity of cryptocurrencies has been on the rise. So much so, that now online financial service provider PayPal has jumped on the bandwagon and will allow its customer to buy, hold, and sell virtual currencies via online wallets.
On Wednesday, PayPal announced it will introduce cryptocurrencies such as Bitcoin, Bitcoin Cash, Litecoin and Ethereum to its platform come 2021, which will give users to option to use cryptocurrencies to make purchases at the 26 million merchants that use PayPal’s network. However, the service will only be made available to users in the US. PayPal CEO Dan Schulman noted that the new cryptocurrency feature is a shift towards digitization that was inevitable, and will ultimately increase the efficiency of its payment system.
PayPal expressed its eagerness to align itself with the emergence of virtual currencies, noting that it wants to be ready when new digital coins enter the cryptocurrency market. In fact, PayPal noted that it has been in talks with central banks, and brainstorming how the financial service company can play a role in digital currencies.
While PayPal is not the only company that has brought cryptocurrencies onto its platform given its extensive usage with over 346 million accounts worldwide, it certainly is a notable move. In the second quarter of 2020, PayPal processed over $222 billion worth of payments globally.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.