PayPal is the latest entrant into the unregulated world of cryptocurrencies. The US online payment firm announced the launch of a new service enabling its customers in the UK to buy, hold and sell cryptocurrency on Monday.
The roll-out marks the first international expansion of PayPal’s cryptocurrencies services following an initial launch in the US in October 2020.
“The pandemic has accelerated digital change and innovation across all aspects of our lives— including the digitisation of money and greater consumer adoption of digital financial services,” said Jose Fernandez da Ponte, Vice President and General Manager, Blockchain, Crypto and Digital Currencies at PayPal.
“Our global reach, digital payments expertise, and knowledge of consumer and businesses, combined with rigorous security and compliance controls provides us the unique opportunity, and the responsibility, to help people in the UK to explore cryptocurrency. We are committed to continuing working closely with regulators in the UK, and around the world, to offer our support—and meaningfully contribute to shaping the role digital currencies will play in the future of global finance and commerce,” he added.
Customers in the UK can choose from four cryptocurrencies — Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Through their PayPal account, they can check out real-time crypto prices, buy or sell, access educational content that answers commonly asked questions, and learn more about cryptocurrencies, including opportunities and risks.
No holding fees, but…!
PayPal allows customers to buy or sell cryptocurrencies as little as £1. Customers can choose from predetermined purchase amounts or enter their own.
Like other crypto exchanges, customers will be able to fund their PayPal account using their bank account or debit card.
There are no fees to hold cryptocurrency in a PayPal account. However, there are transaction charges and currency conversion fees for buying and selling cryptocurrencies.
The rivals
With this move, the US company will rival reputed fintech companies and cryptocurrency exchanges like Revolut and Coinbase, respectively.
In fact, PayPal’s service is similar to that of London-based fintech company Revolut where users cannot move their crypto holdings outside the app.
‘Checkout with Crypto’
In March, the company announced ‘Checkout with Crypto’ in the US, enabling customers to use their cryptocurrency alongside other payment methods in their PayPal wallet. Soon, the company also introduced crypto services on its mobile payment service Venmo in the US.
For the UK offering, PayPal has partnered with Paxos, a New York-regulated digital currency company.
The new offering will start rolling out this week and will be available within the next few weeks for all eligible customers directly in their PayPal account via the website and their mobile app.
In addition to providing these cryptocurrency services, the California-based company is exploring the potential of digital currencies through partnerships with licensed and regulated cryptocurrency platforms and with central banks around the world.
