PayPal has allowed US customers to use cryptocurrency to pay for goods and services. Users who hold Bitcoin, Ethereum, Bitcoin Cash and Litecoin on their wallets will be able to convert them into fiat currencies at the time of purchase at 29 million merchants that work with the payment system.
PayPal’s announcement marks another milestone in the global acceptance of cryptocurrency as a means of payment and reinforces its fundamental importance. This event follows in a series of other announcements – the recent announcement by Tesla and the latest news from Visa – but it differs in that it covers a huge number of outlets (29 million, according to the statement of PayPal) and, accordingly, potential customers around the world – with the relevant legislation of the country and the availability of access to full functionality.
The solution is implemented through the conversion of cryptoassets at the time of payment. In other words, when a user transfers funds, the required amount of cryptocurrency is debited from his account and automatically converted into fiat. It is the fiat currency that the seller receives.
This functionality will be available in 29 million retail outlets in the next few months. The service was named Checkout with Crypto.
“For the first time, we are opening the possibility of the free use of cryptocurrencies. You can use them to pay for purchases just like with a credit or debit card, said PayPal CEO Dan Shulman.
In our opinion, cryptocurrencies are now at a tipping point: they are no longer just an asset class that you buy, store or sell, they are now becoming legal tender. ”
The company will not charge a commission for paying for goods and services with cryptocurrency. The Checkout with Crypto function will automatically appear in the user’s wallet if he has the required amount of crypto assets to pay.
As a reminder, in October 2020, PayPal added functionality for buying, selling and storing cryptocurrencies. In its fourth quarter 2020 report, the company announced plans for the future. So, Shulman announced the imminent launch of a service that makes it possible to settle accounts with cryptocurrency sellers. Checkout with Crypto is that service.