PayPal’s new concern is going to facilitate crypto users and is also opening a new door for crypto space indeed. They extended their service to buying, holding, and selling cryptocurrencies within the PayPal digital wallet.
There would be no fees for buying and selling cryptocurrencies in a PayPal account through December 31, 2020. All these heavenly facilities got blessed with the acceptance of a conditional Bitlicense by the New York State Department of Financial Service (NYDFS).
With only reasonable fees, consumers can now convert their cryptocurrency balance to fiat, as per PayPal. Crypto holders are also able to hold their crypto funds in their PayPal wallet.
After the announcement got spread, PayPal concern has gotten some criticisms. Critics expressed their thoughts saying PayPal was anti-crypto until very recently. Why then they turned their mind in favor of crypto? What if they want to onboard a long customer base and jeopardize their experience? This criticism has been noticed from a blog post by Satoshi Labs.
Peter Smith, CEO of Blockchain.com, thinks the plan of PayPal to be very tenacious and centralized. This modern money is returning the financial freedom of crypto users.
A question has been thrown to Satoshi Labs that what is ‘’healthy’’ adoption. Exchanges lost users’ funds that PayPal has the opportunity to provide these services. The number of users trusts the crypto exchanges are much lesser than the number of consumers that trust PayPal to hold their money. PayPal is leaving the decision on the shoulder of users, if they want to enjoy the service, PayPal will provide them with.
Very Useful Service
A survey made recently over US consumers has shown that a total of 14% out of 60% consumers having PayPal installed on their smartphone use some form of cryptocurrency. 53% of those crypto users use Bitcoin to purchase accessories indeed. The amount of crypto users is thought to take a growth by the next year.
In the last few years, $31.2 billion worth of retail products and services were purchased using cryptocurrencies by all Americans. PayPal users accounted for 74% of that amount. The hurdles of crypto payments to merchants and crypto usability for retail purchases have been driven away by PayPal.
Another news is that Square packed up its recent purchase of $50 million of Bitcoin in flowery terms of ‘’economic empowerment’’ and ‘’financial inclusion’’. What can be its purpose? Maybe it is trying to enable its Cash App users to make retail transactions in Bitcoins and pay merchants in their own chosen currencies.
How to buy Bitcoin with PayPal?
PayPal through a partnership with Paxos Crypto Brokerage will soon allow purchases of cryptocurrencies within PayPal digital wallet introducing options for cryptocurrency buying and selling. Right after adding the features, crypto users will be able to buy and sell through PayPal.
Unlike other credit companies, PayPal is resolving a dispute here by letting buyers request a chargeback in the event of a fraudulent transaction. As a result, buyers get their money back in case falsely disputing a transaction and receive the Bitcoin they’ve bought.
Platforms used to convert PayPal funds to Bitcoin
Two things that one needs are a PayPal account and a wallet. There are some other options that are involved to buying cryptocurrency with PayPal.
Some exchanges like Coinbase, eToro allow payments with a PayPal account. Another exchange namely xCoins allows PayPal to allow people to exchange money for a secured loan of Bitcoins. A borrower here pays a lender a sum plus interest using PayPal once matched by xCoins.io. You can see some exchanges like LocalBitcoins.com and Paxful which are peer-to-peer marketplaces that match buyers with sellers directly. Some disadvantages are also there transacting with PayPal like PayPal fees increase transaction costs where many other platforms charge transaction fees below 10%. That is the reason some platforms don’t allow PayPal.