Users of PayPal in the US will soon be able to directly purchase cryptocurrencies, including Bitcoin, via the website. The function would roll out to “select international markets” in the first half of 2021. Bitcoin spent on PayPal will not be moved out of the digital wallet of PayPal.
PayPal reported in November 2020 that all account holders in the US will be able to purchase and sell cryptocurrencies through its website. The news followed its declaration in October 2020 that it will, via a deal with Paxos Crypto Brokerage, launch options for purchasing and selling cryptocurrencies.
At the point of sale, purchases would be translated to fiat. While the acquisition of crypto is only exclusive to US PayPal users, the features will expand out to “select international markets.” in the first half of 2021. PayPal also plans to roll out the crypto service to its Venmo social payments service in 2021.
How is Crypto Implemented with PayPal?
Utilizing their Cash or Cash Plus account, PayPal users in the U.S. will purchase, sell, and retain selected cryptocurrencies directly via PayPal. Without leaving the PayPal app, users would be able to learn about Crypto, track crypto rates, everything. We are preparing to add Venmo to this service in 2021.
PayPal has confirmed that it would allow cryptocurrency as a means of finance for transactions in 2021, enabling consumers to make purchases on its network of more than 26 million retailers using their cryptocurrency assets.
Today, we are announcing the launch of a new service that will enable customers to buy, hold and sell #Cryptocurrency directly from their PayPal account. https://t.co/QS6JRmG9hs pic.twitter.com/uHBatfZkbF
— PayPal (@PayPal) October 21, 2020
PayPal is currently implementing cryptocurrency purchases with USA accounts and will allow international markets to access crypto at a later time.
What are the steps for purchasing crypto on PayPal?
- You need a PayPal account. If you don’t have one, you would have to set one up at PayPal.com for your credit card or bank account and an email address. You may need to validate certain details before you can proceed, and adhere to the Terms and Conditions of PayPal Cryptocurrencies.
- Click the “Buy Bitcoin and more” banner on the home tab (the “Payments” screen in the app), which appears at the top of the website.
- Pick the cryptocurrency you would like to purchase. Bitcoin, Ethereum, Bitcoin Cash, or Litecoin are the only choices for purchasing and selling on PayPal. In addition, PayPal also offered tools to learn regarding cryptocurrencies; the dangers associated are also mentioned.
- Users can pick a predefined number of a particular cryptocurrency to purchase or choose a custom quantity. There is a minimum purchase value of $1.00.
- From there, users can purchase Bitcoin with a linked checking account or credit/debit card.
Cryptocurrency sold through the PayPal app or website will be exchanged with fiat and will be seen in the user’s account’s Cash Account balance portion. To decide how many in payments they will actually incur, PayPal has included its cost map and conversion spread for consumers.