Online payments giant PayPal has announced the arrival of 'Checkout with Crypto' for US customers. The firm says that this move "significantly expands the utility of cryptocurrency," and that is hard to argue with as it means customers can now use cryptocurrency holdings in the U.S. to checkout at "millions of global online businesses." Moreover, the adoption of this new payment route will expand in the coming months, eventually covering all 29 million merchants that use PayPal.
PayPal says that its 'Checkout with Crypto' makes checkout using crypto quick and easy, as well as safe. It offers "certainty of value and no additional transaction fees." However, to make some money it takes advantage of the 'cryptocurrency conversion spread'. I know when converting USD to GBP, for example, PayPal's currency conversion rates are rather painful to swallow, so that will likely also be the case here. Whatever the case, this move by PayPal looks sure to drive mainstream adoption of cryptocurrencies for both paying and getting paid.
If you are a US resident and are wondering if you can use this facility now, you have to simply have "sufficient cryptocurrency of a single type held in their PayPal wallet to cover the purchase price," fort the 'Checkout with Crypto' option to appear in the payment methods alongside alternatives such as bank account, balance or credit card/debit card.
If you have multiple cryptocurrencies in your PayPal wallet then you will have the additional option of selecting between the likes of Bitcoin, Litecoin, Ethereum or Bitcoin Cash.
PayPal's move is seen as adding support to crypto valuations or even strengthening the market for crypto. This initiative by PayPal was rumoured ahead of announcement and seems to have excited the BTC valuation somewhat helping it reach towards the US$60,000 per BTC valuation again.
October 14 2021 | 15:04