Industry reaction as PayPal embraces cryptocurrency

PayPal has finally incorporated cryptocurrency and will allow customers to buy, sell and hold tokens in digital wallets from 2021.

In a move that could shake up the online gambling sector, as well as mainstream e-commerce, PayPal users will be able use bitcoin, bitcoin cash, ethereum and litecoin to make purchases next year.

It marks a watershed moment for alternative payment methods as PayPal, which boasts some 346 million users, taps into the technology.

Below, crypto experts share their observations on PayPal’s long-awaited announcement.

FunFair COO Lloyd Purser

 We’ve been looking forward to a mainstream payment provider like PayPal moving into the crypto space for a while now. PayPal’s announcement is important as they’re not just giving customers the ability to buy, hold, and sell cryptocurrencies but also utilise them through their network of merchants. This is exciting as it further legitimises cryptocurrencies for utility, not just speculation, which will enable crypto to compete with fiat currencies on a level-playing field.

Several egaming operators have been reaping the benefits of utilising cryptocurrencies for gambling for some time so it’s not new to gambling, but it’s not mainstream, by any means. These crypto operators have been benefiting significantly from reduced costs, including zero chargebacks, their players have benefited from having lots of choice and better levels of protection through open and trustless transactions.

This announcement from PayPal will clearly bring the use of cryptocurrency in gambling into the mainstream for operators, in particular in regulated markets, again further legitimising cryptocurrency and driving adoption. It will be very interesting to see how it’s implemented, and priced, for both players and operators, as traditionally using crypto is a very cost-effective way to transfer funds, so getting that right will be imperative to its success. All in all, this is a significant milestone for cryptocurrency and egaming will clearly benefit.

ASG Solutions co-founder John Caldwell

This is a big moment for crypto. Consumer use of cryptocurrency in gambling, and indeed across all sectors, is inevitable. I commend PayPal for leading the way here and helping to facilitate the adoption of digital payments. PayPal’s reach is a game-changer. It will raise people’s comfort levels with digital which will drive more broad adoption.

DAOWallet CCO Glen Bullen

It’s hard to argue that PayPal’s support for cryptocurrency is anything but a watershed moment in its inevitable journey to the mainstream. Having such a prominent payment provider back digital assets after five years of review is surely a sign, if one was needed, that cryptocurrency is here to stay. Those who may not have realised the significant, untapped demand for crypto – or doubted its legitimacy – will surely have to rethink their positions now.

We’ve had too many conversations with potential partners where we’ve struggled to overcome misguided attitudes to the sector. Too many have been blinded by media hype around exchange hacks, dark webs, and the like, but in legitimate day-to-day business operations these stories simply aren’t relevant. PayPal has done its own thorough research, and this aligns with our own well-researched position on crypto.

Hopefully, PayPal’s stature as a credible, respectable brand will change the attitudes of those in the gambling space who are hesitant about crypto’s legal implications, or conversely unaware of how strong the demand is for instant, immutable crypto payments.

Demand for crypto is ever-increasing, and PayPal’s entry into the sector will only serve to strengthen this demand. Tier-one brands that have been perhaps understandably slow on the uptake of crypto previously will now surely speed up their own incorporation of a crypto offering, and if not from PayPal then from any of the dedicated providers that were already available and proven prior to PayPal’s involvement.