PayPal Introduces “Checkout with Crypto” Option

Over the past few months, cryptocurrencies have seen tremendous growth not only in terms of price but also in mainstream acceptance. The latest example of this comes from PayPal, which just announced the rollout of their Checkout with Crypto feature.

With Checkout with Crypto, buyers will have the option to pay for their purchases using four currently-supported assets: Bitcoin, Litecoin, Ethereum, and Bitcoin Cash. Notably, they will only be able to utilize coins currently in their PayPal wallet. Additionally, purchases cannot split tender across multiple coins, so users will need to ensure that their balance of the selected asset is sufficient.

While there are no transaction fees associated with Checkout with Crypto, PayPal notes that they will build a conversion spread into their crypto to USD calculations. On that note, all funds will be settled as USD when delivered to sellers. As a result, any refunds issued for purchases made with crypto will also be provided in USD.

Announcing the new feature, PayPal president and CEO Dan Schulman said in a statement, “As the use of digital payments and digital currencies accelerates, the introduction of Checkout with Crypto continues our focus on driving mainstream adoption of cryptocurrencies, while continuing to offer PayPal customers choice and flexibility in the ways they can pay using the PayPal wallet.” Schulman added, “Enabling cryptocurrencies to make purchases at businesses around the world is the next chapter in driving the ubiquity and mass acceptance of digital currencies.” Elsewhere, Schulman noted the milestone the feature reached, telling Reuters, “This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside your PayPal wallet.”

PayPal’s announcement comes on the heels of another major brand utilizing crypto. Earlier this week, Visa revealed that it was piloting a program that would see its network using the appropriately named stablecoin USD Coin. That news sent the price of Bitcoin and Etherum northward, with the former reapproaching the $60k mark.

The addition of Checkout with Crypto means that millions of merchants that already utilize the PayPal platform will now be able to accept cryptocurrencies without needing to upgrade their technology or take on the risk associated with these volatile assets. On top of that, with PayPal now supporting both the buying and use of cryptocurrencies, the service could play a role in transitioning the embrace of crypto from a speculative investment into actual circulated currency. Therefore, when the history of crypto is looked back on, there’s reason to believe that this announcement will be seen as a key moment in the technology’s overall acceptance.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

July Report: U.S. Economy Regains Jobs Lost During Pandemic

In March of 2020, following a month that saw unemployment fall to 3.5%, the United States economy shed 459,000 jobs. This was followed up by a massive 20.5 million job loss in April, bringing unemployment to 14.7%. Now, 27 months later, the U.S. has returned to that February 2020 high. According to the latest Bureau of Labor Statistics report, the economy added 528,000 jobs in July. This was more than...

American Express Global Pay for Small Businesses Launches

A new offering from American Express is aiming to make international business-to-business payments easier for owners. This week, the company announced the launch of Global Pay. Using this digital platform, U.S. small businesses can make secure B2B payments to suppliers in more than 40 countries. With the mobile-friendly service, businesses will be able to see exchange rates at the time that they create payments and will be able to view...

Truebill App Rebrands to Rocket Money

In recent years, one of the most talked about personal finance apps has been Truebill. Founded in 2015, the platform has since helped users save a reported $250 million — including $150 million this year. Now, Truebill is changing its name and will continue on as Rocket Money. This name change comes following Rocket Companies' acuqision of Truebill in December 2021. The purchase cost Rocket $1.275 billion in cash. When the...