The online payments company said the addition of cryptocurrencies was a significant milestone on the path to mainstream adoption of cryptocurrencies such as bitcoin. Bitcoin investors agree: Prices jumped 5% on Wednesday’s news.
The efficiency, speed, and resilience of cryptocurrencies offer people the benefits of financial inclusion and access, said Dan Schulman, president and CEO of PayPal, who called any transition from physical to digital currencies “inevitable”.
Cryptocurrency is digital money traded without fees between two parties online without the involvement of traditional banks and no regulatory oversight from national governments.
“Our global reach, our expertise in digital payments, our bilateral network, and rigorous security and compliance controls provide us with the opportunity and responsibility to help facilitate the understanding, redemption and interoperability of these new tools. exchange, “Schulman said in a statement. “
How does it work
PayPal says its new service will give customers the ability to hold and trade Bitcoin, Ethereum, Bitcoin Cash and Litecoin cryptocurrencies using the company’s digital wallet, which allows people to shop online, request and send money.
The company’s U.S. customers will receive access to crypto services in the coming weeks, but will not be able to pay for products and services using cryptocurrency until early 2021. PayPal’s Venmo customers and select international consumers will have no services of cryptography to some extent the first half of 2021.
Investors responded positively to Wednesday’s news, such as PayPal (PYPL) the stock price soared after the bell opened before retreating near where it had opened for the day. The company’s shares have more than doubled since the start of the Covid-19 pandemic in the United States in mid-March.
The pandemic has fueled a boom in the online payments industry and companies like PayPal, Square (SQ) and Venmo – which is owned by PayPal – because many coronavirus-conscious consumers are avoiding the use of physical cash.
PayPal isn’t the only big company betting on cryptocurrencies. Square spent $ 50 million to buy more than 4,700 bitcoins earlier this month. Square CFO Amrita Ahuja told reporters at the time that the company believes bitcoin may be more of a “more ubiquitous currency in the future.”
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