PayPal consumers who hold various cryptocurrencies such as Bitcoin, Litecoin, Ether, and Bitcoin Cash will convert them into fiat currencies and use them to make purchases from different merchants. All 29 million merchants on this platform will enjoy this service.
What does this mean for crypto?
PayPal will become one of the major financial service providers to fully integrate cryptocurrencies into their systems. This critical move has pushed the prices of cryptocurrencies in the market. PayPal’s move happened a few weeks after Tesla announced that they would be accepting Bitcoin payments from their clients. This market acceptance for cryptocurrencies has increased its market cap to over $2 Trillion.
Bitcoin’s price recently reached $60000, which is more than double what this currency was going for at the beginning of the year. The price hike results from the growing acceptance of cryptocurrencies by major financial firms.
The main challenge of using cryptocurrencies as a payment method is the high volatility associated with these digital assets. However, PayPal seeks to overcome this challenge by ensuring merchants receive their payments in fiat currencies. The real-time conversion will shield these merchants from any price fluctuations.
Integration of cryptocurrencies as a form of payment will also change the narrative behind these digital assets. The majority of people interested in cryptocurrencies purchase them to hold and sell later to earn a return. However, shifting this perspective will give more meaning to these currencies and increase their value. Cryptocurrencies are now becoming a legitimate measure of value that can be used by millions of customers and merchants across the world.
One of the best things about using PayPal’s crypto checkout service for online shopping is that you will not be charged any fee to convert your crypto into fiat currency. However, you can only use one type of currency for a single purchase.
Have you used PayPal’s Crypto Checkout Service? How would you rate your experience?