PayPal to embrace cryptocurrency payment methods
Payments giant to facilitate purchasing and selling of tokens such as bitcoin starting in 2021
PayPal has ventured into the cryptocurrency vertical and will allow customers to buy, sell and hold tokens in digital wallets in a move that could shake up the online gambling sector.
Customers will be able to use cryptocurrency such as bitcoin and ethereum via PayPal from Q1 2021 as alternative currencies creep further into the mainstream.
When cryptocurrency payments do take place, merchants will be settled using FIAT currencies and will not receive payments in the form of tokens.
The San Jose-based firm received a conditional cryptocurrency licence from the New York State Department of Financial Services, which along with bitcoin and ethereum, will also allow users to trade in bitcoin cash and litecoin.
To launch the feature, PayPal has partnered with crypto start-up Paxos Trust Company, which this week launched gold betting on crypto-first casino Cloudbet.
The firm also plans to launch the feature across its Venmo subsidiary next year.
PayPal currently boasts 346 million active accounts around the world and processed $222bn in payments in Q2 2020.
Dan Schulman, PayPal president and CEO, said: “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.
“We are eager to work with central banks and regulators around the world to offer our support, and to meaningfully contribute to shaping the role that digital currencies will play in the future of global finance and commerce,” he added.