PayPal will be entering the world of virtual currency, having recently announced that customers will be able to buy Bitcoin and other virtual currencies by using their PayPal account; where it would be stored as part of a users PayPal digital wallet. Customers would then be able to buy from any of the 26 million listed sellers who accept payment by PayPal and the cryptocurrency would simply be converted back into the sellers currency. They plan to start rolling out this option across the US in the next few weeks before launching worldwide in early 2021.
After the announcement was made, Bitcoin prices rose to a new record level. It is believed that other cryptocurrencies to be added by PayPal will include Litecoin, Ethereum and Bitcoin Cash.
Although cryptocurrency has proven to be popular with certain types of investors, it hasn’t yet been adopted by the general population. PayPal said that they are aiming “to increase consumer understanding and adoption of cryptocurrency” and added that “As part of this offering, PayPal will provide account holders with educational content to help them understand the cryptocurrency ecosystem”.
Other companies such as Revolut and the Square’s Cash app have already adopted cryptocurrency as a payment option for their users. PayPal is the biggest name so far to join the movement towards digital currency.
This is not the first time that PayPal has explored the world of digital currency. The firm once partnered with Facebook’s digital currency the Libre, but quickly pulled out just a few months after it was announced.
