On 21 October 2020, PayPal Holdings Inc entered the cryptocurrency business, enabling clients to purchase, sell and keep bitcoin and other virtual coins using the online wallets of the U.S. digital payment firm.
Starting in early 2021, the company said in a statement, PayPal customers would also be able to use cryptocurrencies to shop at the 26 million dealers on its network. In an interview, President and Chief Executive Officer Dan Schulman said PayPal hopes the service will promote the global use of virtual coins and prepare its network for emerging digital currencies that can be created by central banks and corporations.
The new service allows PayPal one of the largest U.S. corporations to have access to cryptocurrencies for customers, which may help Bitcoin and competing cryptocurrencies gain broader acceptance as viable methods of payment. The company, based in San Jose, Calif., hopes the service will promote the global use of virtual coins and prepare its network for emerging digital currencies that can be created by central banks and businesses, Dan Schulman, president and chief executive, said in an interview.
In early New York trade, PayPal shares climbed over 3 percent. Meanwhile, the price of Bitcoin rose almost 5 percent to trade at around $12,440, according to CoinDesk numbers. PayPal revealed last week the latest expansion in the U.K. of its new instalment payment plan, called Pay in 3. The buy now, pay later choice allows clients to pay in three monthly instalments for products.
In the first half of 2021, PayPal also aims to add cryptocurrencies to Venmo. It hopes to encourage users to buy and sell cryptocurrencies next year in some other countries as well. The Department of Financial Services of New York State has given PayPal its first conditional “Bitlicense.”
In the coming years, several central banks around the world have expressed their intention to create digital versions of their currencies, while Facebook Inc-led the launch of Libra in 2019, a cryptocurrency project. PayPal was a founding member, but after a few months, it fell out.