In the future PayPal will process also payments in crypto currencies. Paypal has 346 million users and 26 million merchants. The company will thus promote the worldwide acceptance of virtual currencies and make them accessible to the mainstream.
346 million users and 26 million merchants with access to Bitcoin
The payment provider Paypal enters into the business with crypto currencies. Customers in the USA can buy, sell and keep Bitcoin and other cryptocurrencies over the Paypal platform from now on, how the US company communicated on Wednesday. Other jurisdictions will follow in the coming weeks.
US citizens can buy Bitcoins via PayPal already now
From the beginning of 2021 it should also be possible to pay merchants via PayPal with cryptocurrencies. The PayPal shares gained about three percent on Wall Street yesterday. Also the Bitcoin price increased by 8% and is now on a yearly high of around $13,000.00.
Bitcoin on a yearly high of $13,000.00
PayPal has ten times as many customers as the largest cryptocurrency exchange Coinbase. The inhibition threshold to invest is lowered and a lot of new money will be invested in the market.
PayPal sets on the fact that the offer increases the world-wide use and acceptance of cryptocurrencies, as company boss Dan Schulman said. “We are working with central banks and are thinking about all forms of digital currency and the role Paypal can play.” The California-based company handled $222 billion in payments in the second quarter alone.
$222 billion in payments in the Q2, 2020
Paypal competitors such as Square and Robinhood Markets have been trading Bitcoin & Co for some time, but experts believe PayPal’s entry will boost the market. The price of Bitcoin rose after the announcement to $13,000.00 and thus to its highest value since July. The rise corresponds to a plus of 4,9 per cent.
Paypal had dropped out last year of the Facebook project for the digital currency Libra. The payment service provider had justified this by saying that it wanted to concentrate on its own business. Facebook wants to use Libra to create a global digital currency that will give social network users in regions without a functioning infrastructure access to the monetary system.