All payments made by customers of PayPal will be settled in fiat currencies, in the same manner as several prevailing crypto merchant solutions such as BitPay.
To begin with, PayPal will support cryptos such as Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash (BCH) and Ethereum (ETH).
To offer the service, the payment processing behemoth has joined hands with Paxos. Furthermore, PayPal will apply for a conditional crypto license, technically referred to as BitLicense, from the New York State Department of Financial Services.
Along with crypto payments, PayPal users will also be provided with the facility to buy cryptocurrencies straightaway through the app. PayPal will therefore include a crypto wallet, allowing users to buy, sell and hold crypto through the PayPal apps.
PayPal, being one of the renowned international payment processors, have 346 million active accounts, with $222 billion worth remittance processed in the second quarter of 2020.
Interestingly, PayPal was one of the founding members of Libra Association, the consortium spearheading the development of Facebook’s stablecoin. However, not long ago, the firm withdrew from the project on regulatory pressure.
It can be remembered that there were rumors of PayPal venturing into crypto in the initial months of this year. The company, however, received lots of criticism as financial industry professionals believe that the company is following unfair business practices and the quantum of control it has over its own ecosystem.