Recently, there have been reports that online payment giant PayPal Holdings plans to release cryptocurrency transactions to its users in the coming months.
According to the CoinDesk report, three sources have confirmed that they plan to enable PayPal and Venmo users to buy and sell cryptocurrencies directly. The type and number of available cryptocurrencies have not been disclosed.
One of the three sources said, “They will have some kind of built-in wallet function so you can save them here.” He added that he hopes that the company will “work with multiple exchanges for liquidity cooperation.”
When asked for comments, PayPal refused to respond to rumors. Another source said that the service may be available “in the next three months or earlier.”
PayPal (owner of Venmo) has always been for the blockchain but was not completely part of the cryptocurrency. If these reports are true, the payment company will have a significant impact on the crypto ecosystem.
Impact of PayPal on Crypto Ecosystem
PayPal is reported to have a customer base of more than 320 million. E-commerce pioneers supported the Bitcoin ecosystem through partnerships with major payment processors.
However, direct payment services are not really integrated into the cryptocurrency. The company’s short-lived connection to the Facebook Libra project is the last step that shows interest in participating directly in encryption technology.
Once introduced to a large customer base, direct transactions increase the number of cryptocurrency users. Increasing transaction speed and reliability will inevitably persuade PayPal users to switch to cryptocurrencies.
If you allow your traders to accept cryptocurrency as a payment method, the liquidity of the coin will ultimately increase. Such a huge platform has a diverse customer base and can offer potential support for improving the stability of cryptocurrencies.
PayPal has developed a tamper-proof method of buying and selling cryptocurrencies that makes the industry more profitable for merchants.
One of the main reasons why PayPal was careful about introducing cryptocurrencies is the volatility of the market. However, if they manage to increase their liquidity, they can build a more advanced and precise pricing structure.
What could be nicer than bringing encrypted data traffic to the customer base?