Starting early next year, PayPal users will be able to use cryptocurrency to pay for goods or services from merchants who accept PayPal. “Consumers will be able to instantly convert their selected cryptocurrency balance to fiat currency, with certainty of value and no incremental fees,” the company said in a release. PayPal argued that this move will “significantly increase cryptocurrency’s utility.”
PayPal Holdings Inc. plans to allow customers to buy cryptocurrency through their accounts and use cryptocurrency for merchant payments.
The company announced that it is introducing a way for customers to buy, hold, and sell certain cryptocurrencies within the PayPal wallet. This will roll out over the coming weeks in the U.S.
Initially, PayPal users will be able to buy Bitcoin BTCUSD, +4.57%, Ethereum ETHUSD, +4.34%, Bitcoin Cash BCHUSD, +7.42%, and Litecoin LTCUSD, +11.62%. PayPal intends to bring this function to its Venmo platform and to certain international markets in the first half of next year.
Shares are up 3.7% in premarket trading Wednesday.
Looking for information about how COVID-19 has impacted the payments industry?
The Strawhecker Group (TSG) and Visa Consulting & Analytics (VCA) teamed up to survey a representative sample of U.S. consumers, and analyzed Visa’s proprietary spend data, with the goal of understanding how the COVID-19 pandemic has impacted consumer lifestyles, payments trends, and how behaviors may change after the pandemic.