PayPal to Extend Crypto Services to the UK, Explores Smart contracts & DeFi
PayPal received a restricted BitLicense from the New York State Department of Financial Services in 2020, allowing it to sell crypto related services in New York in collaboration with Paxos. While the program is being rolled out to more nations, the online payment processor has permitted US customers to buy, trade, and store Bitcoin on its platform.
Following its stellar success in the second quarter, PayPal announced intentions to broaden its trading related services to the United Kingdom in its second-quarter performance report.
PayPal CEO Dan Schulman acknowledged this: “Yeah, so, we are happy with the progress we’re witnessing on crypto.” […] We plan to debut in the United Kingdom, maybe as early as coming month, and facilitate trading there.” PayPal is striving to improve its capacity to interact with its Automated Clearing House (ACH) system for quicker payment processing.
The Automated Clearing House (ACH) is an electronic technology that allows retailers to collect money from customers by debiting their checking or savings accounts in a straight forward manner. Crypto trading facility will see gradual capabilities, according to Schulman.
The weekly cryptocurrency purchase cap has now been raised to $100,000. He went on to say that crypto uptake and trade on Venmo had been quite good, with revenue increase of 183% on y-o-y basis for “Pay with Venmo.” Venmo launched crypto trading to its 70 million members in April 2021.
PayPal is also looking into adding smart contracts and DeFi toits platform, as well as many other investment vehicles. This aligns with a leaked video from the EthCC summit in Paris, which indicated that Uniswap is in discussions to connect DeFi with a number of financial systems, including PayPal. This is a likelihood, as per Schulman.
“How do we make smart contracts work better for us? How can we digitize assets and make them available to customers who previously did not have access to these? There are also some intriguing DeFi apps. As a result, we’re putting in a lot of effort.”
The endeavor to keep up with the changing financial sector will help to fill in the holes in conventional framework. As per Schuman, the financial framework is unproductive, and hence reform is required. This is to avoid costly and time-consuming activities. In the next decade, he expects there will be a significant decrease in the use of currency.
“All forms of payment will be taken up by the cell phone. Credit cards as a form factor will become obsolete, and you will instead rely on your smartphone, which may provide far more benefits than simply touching your credit card.”