PayPal today entered the cryptocurrency space eventually. It’s has partnered with Paxos, a cryptocurrency company to support cryptocurrency transactions via its platform. While Paxos in the background take care of the conversions, PayPal will let users pay to pay their merchants via their cryptocurrencies. Starting in the US initially, PayPal will soon expand this service to other markets.
PayPal to Support Cryptocurrencies Soon
While many cryptocurrency companies are trying to become a PayPal for cryptos, PayPal itself turns to a partial cryptocurrency company. The digital payments platform has announced its partnership with Paxos, a cryptocurrency company to offer support for cryptocurrency transactions via its platform.
Under this, the initial cryptocurrencies paving into PayPal will be Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Users can buy, sell, hold, and pay for their purchases. This support won’t be affecting the merchants, since all the payments made using the cryptocurrencies will be automatically converted into fiat currencies, and be settled into the merchant’s account.
All this background work will be handled by Paxos, with PayPal just giving users the wallets and acting as an interface. This new support eliminates the need for reaching out to exchange for converting cryptocurrencies into fiat. And as PayPal is already having over 26 million merchants, it’s a significant boost to the cryptocurrency community.
PayPal was given a conditional BitLicense by the New York State Department of Financial Service, letting it to launch this new service with Paxos in New York. And since it’s starting progressively, users can join the waitlist to receive this support when launched. The platform has also updated the fees page regarding this.
PayPal under this service charge more fees for fiat-to-crypto currency conversion, and vice versa. Users should be prepared to pay a minimum fee of $0.50 for transactions under $25, 1.5% for transactions above $1,000, 1.8% for transactions between $200 and $1,000, 2% for transactions between $100 and $200 and 2.3% for transactions below $100.