The president and CEO of online payment giant PayPal announced on Tuesday ahead of the official announcement that online payment giant PayPal would be accepting cryptocurrency as a medium of exchange for its millions of global merchants.
Rumors of PayPal’s alleged decision to accept cryptocurrency spread on March 30th. Later that day, the company’s CEO Dan Schulman confirmed to Reuters that these rumors were true, and an official statement was imminent.
The new system is expected to have a crypto checkout service where users can use their stored coins to purchase goods and services from approved suppliers. According to reports, with the new system, merchants will be able to obtain legal tender equivalents after quickly transferring coins during the sale.
The checkout service is expected to be available for all four cryptocurrencies supported by PayPal at launch, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). Customers who pay with cryptocurrency do not have to pay transaction fees, and only one coin can be used for each purchase.
“We think it is a transitional point where cryptocurrencies move from being predominantly an asset class that you buy, hold and or sell to now becoming a legitimate funding source to make transactions in the real world at millions of merchants.”said Schulman, regarding the launch.
PayPal Journey Into Crypto
PayPal announced its intention to enter the cryptocurrency field in October 2020. In early March, PayPal continued its engagement in the industry when it acquired Curv, a digital asset security company, for $200 million. They also partnered with FTX recently to provide payments for forex brokers.
A PayPal message was sent just 24 hours after Visa announced that Visa would be using stablecoins on the Ethereum blockchain to test the new payment system. The pilot will see participating merchants agree to settle customers’ fiat transactions using the USDC stablecoin.