On June 7, PayPal announced that it is enabling the transfer of cryptos to and from other wallets and exchanges within a user’s account — as well as the potential to conduct business with millions of merchants via its Checkout with Crypto function — in response to customer demand.
This feature is available now to select U.S. users, and PayPal will be rolling it out to all eligible U.S. customers in the coming weeks, the company said in a statement on its website.
“Allowing PayPal customers the flexibility to move their crypto assets (Bitcoin, Ethereum, Bitcoin Cash, or Litecoin) into, outside of, and within our PayPal platform reflects the continuing evolution of our best-in-class platform and enables customers to interact with the broader crypto ecosystem,” PayPal exec Jose Fernandez da Ponte said in the statement. “Customers who transfer their crypto into PayPal can extend the utility of their crypto by spending using our Checkout with Crypto product at millions of merchants.”
Mikkel Morch, executive director at crypto/digital asset hedge fund ARK36, told GOBankingRates that large fintech and payments companies such as PayPal or Robinhood are increasingly integrating cryptocurrencies into their services in spite of bear market conditions in the crypto space.
“This is significant because it shows that the popular demand for new and easier ways to access cryptocurrencies is as strong as ever,” Morch said. “Clearly, users are focusing not only on the speculative aspect of cryptocurrencies but also on the innovation they offer in terms of payments and transactions. So the mainstream adoption of crypto is accelerating even in a bear market and — when broader macroeconomic conditions are right — it will inevitably be reflected in the price of these assets as well.”
PayPal also announced it has been granted a full Bitlicense by the New York Department of Financial Services (NYDFS) – becoming the first company to convert a conditional Bitlicense into a full Bitlicense and “signaling our commitment to responsible innovation and expanding the accessibility and utility of digital currencies while fully complying with regulatory guidelines and best practices.”
The company added it will continue to roll out additional crypto features, products, and services in the months ahead.
Digital Payments, Crypto Transactions Becoming Commonplace
Ivan Ravlich, CEO of Web3 infrastructure company Hypernet Labs, told GOBankingRates that digital payments are becoming easier — and that everyone is trying to keep up.
“It’s a race to see who can provide the most utility with the easiest user experiences, and PayPal’s new functionality should make it a leader among crypto users,” Ravlich said. “Bridging the divide between mainstream finance and crypto is one of the most important frontiers for crypto right now, and the ability to seamlessly move money between PayPal and external wallets means PayPal provides the most crypto functionality among mainstream apps. The key is that it’s compatible with decentralization. Obviously PayPal isn’t decentralized like a crypto protocol is, but it will provide easy access to mainstream finance for users who self-custody their own crypto.”
Crypto Transfers Are Final, Cannot be Reversed
PayPal also reminded customers that crypto transfers are final and cannot be reversed.
“Check the destination address carefully and ensure that the destination address is of the same type (Bitcoin, Ethereum, Bitcoin Cash, or Litecoin) as the coins you are sending. Pay particular attention when sending crypto to unfamiliar addresses,” the company said in the statement.
In terms of fees, sending cryptocurrency outside of PayPal will have a network fee — also known as the blockchain network fee — which is not a PayPal fee.
“This fee is generated depending on network congestion and other factors and may fluctuate. PayPal will provide an estimate of your network fees on the confirmation screen. Sending or receiving cryptocurrency to other users on PayPal will not incur a network fee,” according to the statement.
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