PayPal has announced that its US users can now check out using cryptocurrency. PayPal, in the recent past, has made good inroads in the crypto market including the recent acquisition of Curv, a startup based on cryptocurrency security. Not to forget, Paypal’s partnership with Paxos, which allows customers to hold, buy, and sell a range of cryptocurrencies.
In the coming months, PayPal plans to extend this feature to its 29 million global online businesses. Furthermore, businesses will not have to make any additional payments for this feature. Checkout with Crypto will allow its U.S. customers to sell their cryptocurrency while checking out. The transaction ultimately takes place in USD only. That means nothing changes for the businesses as they are getting paid in U.S. dollars.
For the time being, the shoppers can pay only using Litecoin, Bitcoin, Bitcoin Cash, and Ethereum. However, you can use only one particular type of cryptocurrency for one purchase.
When a customer reaches the checkout page, the Checkout with Crypto feature will appear along with the other conventional payment methods like PayPal balance, bank account, debit card, or credit card. However, the customer must be having enough crypto balance to make payments for that particular purchase. This feature will come with PayPal’s security and safety benefits, fraud protection, PayPal notes, etc. The buyer will receive a purchase receipt as well as a record of the crypto sale.
With this move, PayPal has made true of its promise that it will launch a crypto checkout feature in 2021. Currently, PayPal charges a transaction fee when customers buy or sell cryptocurrencies. This fact explains why the payment giant is not charging any fee to the businesses.
According to Senior Vice Presidents of Pay Pal Omni Payments, “Checkout with Crypto allows businesses to accept the proceeds from sales of cryptocurrency as a payment type, all within the current PayPal integration, removing the need for any additional action for businesses.” “PayPal handles the crypto sale and conversion with the consumer and passes on U.S. dollars to the business for the purchase, streamlining the process for businesses,” Magats added.
PayPal’s decision comes after Tesla’s last week’s announcement, which allowed U.S. customers to buy its cars using bitcoin. Furthermore, Visa has also allowed its users to use cryptocurrency for making settlements.