PayPal (PayPal Holdings Inc) recently entered the cryptocurrency market, allowing people to use the PayPal wallet to buy, sell, and store cryptocurrencies (Bitcoin and others). It has partnered with Paxos Trust Company to develop this service. Thousands of merchants around the world choose PayPal for collecting online payments from their buyers, and this number is growing. Some merchants are already accepting cryptocurrencies, and PayPal thinks that 26 million merchants will do the same by early 2021.
Apart from the existing cryptocurrencies, PayPal will support the CBDC currencies too, including the recently launched ones. The company is planning to expand its business to new locations, thus bringing more people into the field of cryptocurrency.
Apart from PayPal, Square Inc. and Robinhood Markets Inc offer the same services to their customers. But, the company’s name itself does the trick. It offers reliability and a sense of security to users.
This power move would encourage merchants to participate in these transactions, thus lowering the cost of these transactions. Most people refrain from it due to the market’s volatility.
It should be noted that merchants will not receive cryptocurrencies as payment. Instead, they will the equivalent in US dollars and other fiat currencies. A mechanism will be used to transform cryptocurrencies into fiat currencies. PayPal acquired the first license from the New York State Department of Financial Services. This license will allow traders to transact using these currencies.