In October 2020, PayPal announced its support for cryptocurrencies, and they recently made the dream a reality by allowing account holders to buy, sell and store crypto. Aside from buying bitcoin directly, they recently introduced a checkout option for cryptocurrency. Hence, users can instantly convert their digital currencies to cash without additional transaction fees.
Checkout With Cryptocurrency
As cryptocurrencies move from an asset class, you hold, buy and sell to a legitimate funding source. Many companies already permit the use of digital currencies for transactions. With PayPal introducing an option to checkout with crypto, account holders can transact with digital currencies. People can use it in a similar manner as a Credit card or Debit card in the PayPal wallet.
Account holders with Bitcoin, Litecoin, Ethereum can use it to cover the cost, provided the crypto balance is sufficient to cover the purchase cost. However, users can only use one type of crypto per transaction. Businesses and online merchants have nothing to worry about since they will receive payments in US dollars or the local payment of their choice. PayPal handles all the crypto conversions, which means online merchants can add crypto as a payment method for their products without dealing with crypto directly.
Checkout with crypto provides a secure payment method since it is protected by PayPal safety and security features. Besides, account holders will still enjoy fraud protection, purchase protection and return shipping on eligible products. After the transaction customer will receive separate receipts on cryptocurrency sale and the purchase receipt.
While PayPal is not the first payment provider to support crypto, its adoption of digital currencies has a significant impact. Unlike their competitor, Square that launched support for Bitcoin in 2018 on their cash app, PayPal created both a digital wallet and a crypto exchange. This streamlines transactions between cash and cryptocurrencies.
