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| PayPal launched a cryptocurrency payment service |
PayPal announced that it has enabled US consumers to use cryptocurrency to make payments to millions of online merchants around the world through its "Checkout with Crypto" feature, an initiative that encourages the use of digital assets in everyday businesses that could improve dramatically.
The company said: Customers who have Bitcoin, Ethereum, Bitcoin Cash and Litecoin in the PayPal digital wallet can now convert them into fiat currency when purchasing a payment via Crypto.
The company said that PayPal announced that the service will start in the second half of last year and that the service will be available to 29 million merchants in the coming months.
This is the first time you can use cryptocurrency with transparency, just like using a credit or debit card in a PayPal wallet, said Chairman and CEO Dan Shulman (Dan Shulman).
The payment method was introduced by PayPal in October and is based on PayPal's ability to buy, sell, and hold cryptocurrencies.
This proposal made PayPal the leading financial company to open its cryptocurrency network and helped drive the price of cryptocurrencies higher.
Since the start of the year, Bitcoin has nearly doubled in value thanks to increased interest from large financial firms looking to gain acceptance and see it as a hedge against inflation.
Less than a week after Tesla announced that it would accept Bitcoin payments for its cars, PayPal is already starting to launch.
Tesla said that unlike PayPal transactions (merchants accept paper money), Tesla uses Bitcoin as a payment method.
Although digital assets are growing among large investors, it is not a popular payment method, partly due to its constant volatility.
PayPal hopes that their service can change that by dealing with fiat transactions so that merchants do not take on the risk of volatility.
"We believe this is a turning point as the cryptocurrency has moved from the class of assets you buy, hold or sell essentially to a source of funds for real-world transactions with millions of traders," Schulman said.
The company clarified that there are no transaction fees when paying in cryptocurrency and that only one type of currency can be used per purchase.