FinTech News
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.
