Despite its tremendous growth, cryptocurrency has yet to catch on in the mainstream. That may change soon, as PayPal just revealed plans to support cryptocurrency on its platform. PayPal’s cryptocurrency announcement represents a shift in the financial industry that could have major consequences.
After plenty of speculation, on October 21, PayPal unveiled a new cryptocurrency service coming in 2021. Other fintech firms like Square have shown interest in crypto, but PayPal may be the biggest name yet to support it. When this service rolls out, it could help boost crypto into mainstream adoption.
How PayPal’s Cryptocurrency Service Works
PayPal’s cryptocurrency support will allow users to buy, sell and hold crypto on its platform. Right now, crypto users have to rely on less-established, sometimes less-trusted services to handle their tokens. With this PayPal update, they’ll be able to do everything from the PayPal app.
PayPal already has a digital wallet, so the addition of crypto, which relies on these wallets, makes sense. For the most part, it will work like the company’s current services. Users will be able to request and send crypto peer-to-peer as they do with fiat currencies now.
The service will support Bitcoin, Ethereum, Bitcoin Cash and Litecoin at launch and may add more currencies later. Crypto buying and sharing will roll out in the next few weeks, but more functionality will come in 2021. Early next year, users will be able to use PayPal to pay for goods and services with cryptocurrency.
With this service, PayPal users could use cryptocurrency like any other form of payment. PayPal will instantly convert crypto to fiat currency at checkout with no additional fees. Even if a store doesn’t accept crypto, consumers can pay with crypto as long as the store accepts PayPal.
What This Means for Cryptocurrency
As of 2018, 70% of American retailers accepted PayPal payments or planned to accept them soon. That means that by 2021, American consumers can use crypto to buy things at 70% of retailers. Since PayPal is such a widely-accepted service, its crypto support gives cryptocurrency some needed convenience.
PayPal’s cryptocurrency service provides a convenient solution to the problem of crypto’s lack of support. Its fee-free instant conversions give cryptocurrency the utility of a traditional debit payment. Limited usefulness has long been a barrier to widespread crypto adoption, but PayPal is changing that.
Crypto users will also have access to support they may not have had before. If there’s an issue with a crypto payment, they can contact PayPal support like any other PayPal transaction. This support may also help convince consumers who have been cautious about cryptocurrency to embrace it.
A New Age In FinTech
Financial technology has shaped the way modern transactions happen, and it’s about to undergo another shift. PayPal’s cryptocurrency adoption could signify the start of mainstream crypto support. More major players in the fintech industry could follow suit, further legitimizing crypto.The finance industry, like many others, has become increasingly digital over the years. Services like PayPal helped transactions go digital, and now money itself is digitizing, thanks to cryptocurrency.
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