PayPal Will Support Direct Cryptocurrency Transactions

Jul 8, 2020 Crypto

As per the reports received by CoinDesk, it is being said that the online payment giant, PayPal, would soon allow its customers to transact in cryptocurrencies on its platform. With the client base of over 320 million, PayPal boasts of being one of the largest online payment facilitators globally. Along with PayPal, its affiliate Venmo would be offering the cryptocurrencies as well for the buy or sell option. However, it is not yet clear as to which cryptocurrencies would be supported on the platform. As per the source, the company would be working with multiple coin exchanges to ensure options as well as liquidity for the clients. One of the sources also confirmed that PayPal and Venmo would supposedly have a wallet-like feature that would help with the storage of the cryptocurrency.

While no official announcement has been made from the PayPal front, the sources at CoinDesk reports that PayPal is planning to launch the functionality in the next three months itself, or even sooner. The online payment industry has been gradually waking up to the emergence of cryptocurrencies as one of the mainstream contenders. It has forced PayPal to take note of the changing trends and consider adding crypto offerings for its massive client base. Until recently, Paypal’s stance on the crypto ecosystem was that while the company did support blockchain technology and its advantages, it wasn’t really into cryptocurrencies.

Just last year, PayPal CFO John Rainey, said to the media that the teams at PayPal are closely following and working on blockchain technology as well as for cryptocurrencies. He added that while the company would love to be a part of this ecosystem in any way possible, it would be too early to start trading in Bitcoin. The ambitions of PayPal on the blockchain front took a major blow when it became the first company to pull out from the global coalition of firms associated with the cryptocurrency initiative led by Facebook, the Libra Association.

At the time PayPal left the coalition, it didn’t offer any credible reasons for its decision. However, with time, the company started to drop hints of its interest in the blockchain technology and cryptocurrencies. One of the hints that PayPal dropped recently, showcasing its interest in the cryptocurrencies is the investment it made in TRM Labs, which is a crypto-currency compliance and risk management platform. The payment giant is investing a lot in research and development, and it is seen by the recent patent it filed to make Bitcoin transaction processing time faster through its proprietary cryptocurrency payment system.

As the world of cryptocurrencies gets wider acceptance globally, PayPal doesn’t want to be left behind. It is especially true because one of the major rivals of PayPal, Square Inc, founded and headed by CEO of Twitter, Jack Dorsey, has been involved in the cryptocurrency from much earlier. Square Inc also received the license last year in New York to deal with cryptocurrencies. Another London based company named Revolut that partnered with Bitstamp has been able to collect more than $500 million till February 2020.

As per the rumors, it is being reported that PayPal would likely include multiple crypto-exchanges in its cryptocurrencies’ ecosystem, including Coinbase and Bitstamp. However, nothing has been officially announced by the company. CFO of PayPal, John Rainey, said recently that digitization of financial and payments industry can make a huge difference for over 2 billion people across the globe that doesn’t have a savings or checking account.

It is worth mentioning here that Coinbase and PayPal shared a working relationship since as early as 2016 when the payment giant offered fiat withdrawals on its platform for its US customers. Last year too, PayPal offered its Canadian and EU Coinbase customers to withdraw to PayPal. One more hint that PayPal is venturing into the crypto world is its recent hiring spree. The company has been listing the need for cryptocurrency engineers and technical lead in India. The company reportedly has an in-house Crypto engineering team, which PayPal says is responsible for the development of crypto-based products and features that are viable for its PayPal platform. The crypto enthusiasts world over are excited with the news and believe that it is going to change the crypto market for good as it is would definitely help the retail outreach of the cryptocurrencies.