Paypal Holdings, Inc. (NASDAQ: PYPL) has announced the launch of a new service to allow customers to buy, hold and sell cryptocurrency directly from their Paypal account. The company plans to make cryptocurrency payments available as a funding source for purchase on over 26 million of its merchants worldwide. Instrument of exchange, cost and speed to transact have all been issues with implementing cryptocurrency as a payment option.
“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,” said Dan Schulman, president and CEO, PayPal. “Our global reach, digital payments expertise, two-sided network, and rigorous security and compliance controls provide us with the opportunity, and the responsibility, to help facilitate the understanding, redemption and interoperability of these new instruments of exchange. 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.”
The initial cryptocurrencies to buy, hold and sell are Bitcoin, Ethereum, Bitcoin Cash, Litecoin directly within Paypal’s digital wallet. Within the next few weeks the service will be implemented to Paypal account holders. The features will soon be expanded to Venmo and select international markets within the first half of 2021. The service is made possible in the United States through a partnership with Paxos Trust Company, a legal provider of cryptocurrency products and services.
Paypal has been granted a unique Bitlicense by the New York State Department of Financial Services. “NYDFS’ approval today follows our June 2020 announcement for a new framework for a conditional Bitlicense to encourage, promote, and assist interested institutions to have a well-regulated way to access the New York virtual currency marketplace in a way that is both timely and protective of New York consumers, through partnerships with New York authorized virtual currency firms,” said Linda A. Lacewell, superintendent, NYDFS. “NYDFS will continue to encourage and support financial service providers to operate, grow, remain and expand in New York and work with innovators to enable them to germinate and test their ideas, for a dynamic and forward looking financial services sector, especially as we work to build New York back better in the midst of this pandemic.”