Good News – PayPal merchants can accept cryptocurrency at checkout
Previously, PayPal announced that it would allow merchants to accept cryptocurrencies for payment. And today, they went live with the solution with its 29 million merchants. Nevertheless, it is only available for those who have PayPal cryptocurrency holdings in the United States.
Last year, PayPal announced that users can buy and hold certain cryptocurrencies in their wallets with the help of Paxos. They were astonished by the demand and later they commented that it added stickiness to the wallet. This helps users to check the valuations.
PayPal CEO said that the use of digital currencies allows the introduction of checkout and crypto continues the focus on driving adoption of cryptocurrencies. He further added that allowing cryptocurrencies to make purchases in businesses around the world can drive the mass acceptance of digital currencies.
No doubt, it is a big deal for PayPal, but many cryptocurrency exchanges have already offered Mastercard and Visa cards that allow users to pay via cryptocurrency. Hence, it is possible to pay with cryptocurrency at any outlet that accepts Visa.
For retailers, purchases are getting converted into fiat currency and the retailer receives fiat currency as usual. And that’s how it works for card and PayPal.
PayPal also said that they will not charge any fees, but there is a spread in cryptocurrency. As of now, Ethereum fees are higher, which means Ether is important. And this will have a huge impact on cryptocurrency payment due to taxes. Several cryptocurrencies are supported such as Bitcoin, Litecoin, Ethereum, or Bitcoin Cash.
However, once Ethereum fees are overturned and stablecoins or central bank digital currencies can be used, it becomes more interesting.
Meanwhile, PayPal has recently acquired cryptocurrency custody firm Curv for $200 million.