No Transaction Fees Applied
PayPal, a dominant player in the digital payments business industry, launched today a new feature to allow its US customers with cryptocurrency holdings to complete purchases with cryptocurrency at checkout.
The US-based customers using the “Checkout with Crypto” business service are now able to check out safely and easily without additional transaction fees applied. Customers will need to convert their cryptocurrency holdings to fiat currency at checkout, the company said in a press release.
This service automatically shows in the PayPal wallet for those users who have a sufficient cryptocurrency balance to cover the purchase. A “Checkout with Crypto” service will become available at all of its 29 million merchants in the coming months, the company noted.
“As the use of digital payments and digital currencies accelerates, the introduction of Checkout with Crypto continues our focus on driving mainstream adoption of cryptocurrencies, while continuing to offer PayPal customers choice and flexibility in the ways they can pay using the PayPal wallet," said Dan Schulman, president and CEO of the company.
With today’s launch, US-based customers will be able to make purchases using cryptocurrency holdings, in addition to other payment methods, such as balance or credit card/debit card or a bank account.
"Enabling cryptocurrencies to make purchases at businesses around the world is the next chapter in driving the ubiquity and mass acceptance of digital currencies,” added Schulman.
In October last year, PayPal announced it is working on embracing the cryptocurrency business ecosystem. A month later, the payments company said it launched a new business service to allow its users buy, hold, and sell selected cryptocurrencies, namely Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
"The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly," CEO of the company Schulman said in November.
Today’s news from PayPal comes just a day after payment-processing company Visa announced it will start to settle payments using a USD Coin (USDC) cryptocurrency, as reported by Startup Savant yesterday. The company said it plans to offer the USDC settlement capability to other business partners later this year.
In February, Visa’s archrival, Mastercard, announced plans to provide business support for certain cryptocurrencies on its business platform later this year.
Bitcoin price soared about 2% on today’s news. This is in addition to gains over 3% that Bitcoin gained yesterday on Visa’s announcement.
Bitcoin trades higher today after PayPal launched a “Checkout with Crypto” service today to allow its US customers to pay with cryptocurrency holdings while no transaction fee is applied. This service is expected to become available for international customers later this year.
About the Author
Luigi Wewege is the Senior Vice President, and Head of Private Banking at Caye International Bank. Outside of the bank, he serves as an Instructor at the FinTech School which provides online training courses on the latest technological and innovation developments within the financial services industry. Luigi is also the published author of: The Digital Banking Revolution.