US PayPal users will soon be able to purchase cryptocurrencies on the platform. The payment service will sell Bitcoin, Bitcoin Cash, Ethereum and Litecoin. From the beginning of 2021, customers can use their cryptocurrency for purchases without first exchanging it on an exchange.
PayPal has partnered with Paxos for the service, a payment provider that also issues the Paxos Standard Token. The service will start later this year, but for now it only applies to the US. In the first half of 2021, PayPal also wants to integrate the service into the Venmo payment app, and bring the service to more countries. In addition to its own exchange, PayPal will have its own wallet where users can store their coins.
Users can buy the four crypto coins on PayPal’s own exchange. Then they can pay at all merchants that support PayPal. There are currently about 26 million worldwide. The retailers will then be paid in fiat currency. According to TechCrunch, PayPal will soon charge a 2.3 percent transaction fee for transactions under $ 100, 2 percent for transactions under $ 200, 1.8 percent for transactions up to $ 1,000 and 1.5 percent for transactions above that. Until the end of this year, no transaction costs will be charged.
PayPal says it offers the cryptocurrency to “increase customer understanding and adoption.” Customers are therefore also shown ‘educational content’ that should ‘help them understand the cryptocurrency ecosystem’.