Customers who hold bitcoin, ether, bitcoin cash and litecoin in PayPal digital wallets will now be able to convert their holdings into fiat currencies at checkouts to make purchases, as per the report.
PayPal’s latest “Checkout with Crypto” enables customers to immediately convert their Bitcoin, Ethereum, Litecoin, or Bitcoin Cash to US dollars (with no extra transaction fees) that PayPal then uses to complete the transaction, following the launch of the ability for US users to buy and sell cryptocurrency directly from their accounts last November. If a merchant does not accept US dollars, PayPal converts those dollars into local currency at PayPal’s regular exchange rates.
“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,” said PayPal President and CEO Dan Schulman. “Enabling cryptocurrencies to make purchases at businesses around the world is the next chapter in driving the ubiquity and mass acceptance of digital currencies.”
If a user has “sufficient cryptocurrency balance to fund a qualified transaction,” the feature will appear in the PayPal wallet, and users will be able to see crypto balances for each type of coin in the app. However, each purchase can only be made with one form of cryptocurrency, according to the business.
PayPal became one of the biggest conventional financial firms to open its network to cryptocurrencies as a result of the sale, which aided in the rise of virtual coin prices.
Bitcoin has nearly doubled in value since the start of this year, boosted by increased interest from larger financial firms that are betting on greater adoption and see it as a hedge against inflation.
The launch of PayPal comes less than a week after Tesla Inc announced that it will begin accepting bitcoin payments for its vehicles. Unlike PayPal transactions, where merchants receive fiat currency, Tesla has stated that the bitcoin used as payment will be held by the company.