The company announced Wednesday that it is introducing a way for customers to buy, hold, and sell certain cryptocurrencies within the PayPal PYPL wallet.
PayPal also disclosed in its release that it has obtained a conditional Bitlicense by the New York State Department of Financial Services.
This will roll out over the coming weeks in the U.S.
PayPal Holdings, Inc. is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders.
The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee in exchange for benefits such as one-click transactions and password memory.
The company had processed $222 billion in payments in the second quarter.
PayPal said buy, sell and hold features would be live within the next few weeks but for some users, the features are already available.
PayPal’s service does not allow bitcoin or other cryptocurrencies to be withdrawn or deposited. Once you buy the coins, they stay in your account until you sell.
Initially, the service supports bitcoin (BTC), either (ETH), bitcoin cash (BCH) and litecoin (LTC).
Where to use?
PayPal customers will also be able to use cryptocurrencies to shop at the 26 million merchants on its network starting in early 2021
The payments will be settled through fiat currencies, similar to many existing crypto merchant solutions like BitPay.
This means that the merchants will be receiving fiat, as PayPal will take care of the conversion.
PayPal has 346 million active accounts worldwide.
Stock Market Impact
PayPal stock jumped 4.8% to 211.67 in morning trades on the stock market today.
Its stock has a cup-and-handle entry point of 209.12
Comment from CEO and Director
“PayPal hopes the service will encourage global use of virtual coins and prepare its network for new digital currencies that may be developed by central banks and corporations.
We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role”.