Online payments giant PayPal will start to accept cryptocurrency as a medium of exchange at its millions of global merchants. The payment firm’s president and CEO revealed on Tuesday ahead of a formal announcement. News broke regarding PayPal’s rumored decision to accept cryptocurrencies early on March 30. Later in the day, the firm’s CEO, Dan Schulman, confirmed to Reuters that the rumors were true and that an official statement would be released imminently.
PayPal expected to feature a crypto checkout service.
According to the report, the new system is expected to feature a crypto checkout service where users can pay for goods and services at approved vendors using their stored coins. The system will reportedly see merchants receive matching funds directly in fiat currency after coins are subject to a quick transfer at the time of sale. The checkout service is expected to be available for all four of PayPal’s supported cryptocurrencies upon launch, consisting of Bitcoin, Ether, Litecoin, and Bitcoin Cash. Customers who pay with cryptocurrencies will incur no transaction fees on purchases.
“Cryptocurrencies are becoming legitimate funding source to make transactions.”
“We think it is a transitional point where cryptocurrencies move from being predominantly an asset class that you buy, hold and or sell to now becoming a legitimate funding source to make transactions in the real world at millions of merchants,” said CEO Dan Schulman, regarding the launch. In October 2020, when PayPal’s intention to enter the crypto space was first announced, Galaxy Digital CEO Mike Novogratz called it “the shot heard around the world” in regards to how Wall Street would receive the news. The PayPal news also comes just a day after Visa announced that it would pilot a new payments system using stablecoins on the Ethereum blockchain.