PayPal Holdings Inc. will begin allowing its U.S. customers to buy products using cryptocurrencies, becoming the first conventional payment company to accept digital assets. The functionality will be available to millions of PayPal merchants at first, with plans to expand in the coming months.
If a customer has enough cryptocurrency of a single form in their PayPal wallet to cover the purchase price, Checkout with Crypto will appear for them to use as a payment method.
Depending on the types of crypto holdings they have and if they have enough to support a given order, they will be able to pick their favorite cryptocurrency at checkout.
PayPal also revealed that users who pay for cryptocurrencies will not be charged a processing fee, and that a conversion spread will be included with the crypto-to-dollar conversion.
Customers that use Checkout with Crypto will check out easily and efficiently, transferring cryptocurrency reserves to fiat currencies with assurance of ownership with no additional processing costs, extending PayPal’s power to purchase, keep, and sell cryptocurrency.
“As the use of digital payments and digital currencies accelerates, the introduction of Checkout with Crypto continues our focus on driving mainstream adoption of cryptocurrencies, while continuing to offer PayPal customers choice and flexibility in the ways they can pay using the PayPal wallet,” stated Dan Schulman, president and CEO, PayPal.
With qualified Checkout with Crypto transactions, all of the privacy, security, and other benefits of using PayPal are included, including 24/7 fraud prevention, return delivery, and purchasing protection on qualifying products.
PayPal previously partnered with Paxos Trust Firm, a virtual-currency company that manages PayPal customers’ crypto portfolios, to enable consumers to buy, sell, and retain cryptocurrencies. The corporation plans to settle all trades in US dollars and translate transfers to the currencies of its numerous merchants using its regular exchange rates.
According to a spokesperson for PayPal, the organization does not actually plan to buy crypto for investment or cash management purposes, and although it may intend to keep any balance for operating purposes in the future, it has not yet deemed it necessary.