Milestone Unlocked! PayPal Introduces Cryptocurrency Payment Feature, CEO: Just Like Your Credit Card

PayPal will announce on Tuesday evening that it is opening up its platform for U.S. customers to pay online merchants using cryptocurrency, marking a significant milestone for the widespread adoption of digital currencies. This move solidifies PayPal as one of the largest financial institutions to embrace cryptocurrency.

PayPal Introduces Cryptocurrency Checkout Payment

According to a report from Reuters, PayPal is set to announce the launch of cryptocurrency payment features for its users on the evening of the 30th (U.S. time). Users will be able to convert their held cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, and Litecoin) directly into fiat currency for consumer payments at checkout.

CEO Dan Schulman told Reuters:

This is the first time that users can seamlessly use cryptocurrencies in the same way as credit cards or debit cards in their PayPal wallets.

Commitment from PayPal's CEO

In fact, this move is not entirely surprising, yet somewhat unexpectedly fast. It was reported last November that CEO Dan Schulman mentioned in an interview that by 2021, 28 million merchants would be able to transact in cryptocurrencies, a promise that has now been fulfilled. He stated at that time:

Cryptocurrencies will have more and more real use cases, and Bitcoin as a currency will ultimately go beyond the spirit of mere buying and holding; its value, like all forms of money, is based on trust, and the value also depends on the level of trust.

Eliminating Volatility Concerns

PayPal opened its latest cryptocurrency trading feature to all U.S. users in early November last year and raised the weekly purchase limit to $20,000.

Unlike Tesla, which accepts Bitcoin payments and holds Bitcoin, PayPal aims to settle in fiat currency to ensure that merchants do not bear volatility risks. Schulman said:

We see this as another transitional period, where cryptocurrencies are moving from being a transaction category that can only buy and hold, to now becoming a legitimate source of funds for payments at millions of merchants.

It is understood that the company will not charge any transaction fees and each payment will be settled using a single cryptocurrency.

The timing of PayPal's announcement is quite sensitive, as Visa also announced on the 29th that it will enable transactions on its payment network to be settled using the cryptocurrency USD Coin (USDC). The consecutive release of major positive news from these two financial institutions undoubtedly illustrates the institutional rush to grab a piece of the cryptocurrency market pie.