The move comes after nearly two years since PayPal allowed users to buy and sell cryptocurrencies on its platform.
After launching the ability to buy and sell cryptocurrencies on its platform in October 2020, PayPal finally allows users to transfer, send and receive digital assets between PayPal and other wallets and exchanges. Starting today, the feature is available to select US users and will be expanded to all eligible US users in the coming weeks. The first batch of supported coins consists of Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
In addition, customers who transfer their cryptocurrencies to PayPal can spend them through Checkout at millions of merchant terminals. The New York Department of Financial Services granted the company a full Bitlicense for the conduct.
Users would simply have to log into their accounts and enter the crypto section of the app to start transferring transfer coins. Users are often required to complete a one-time identity verification before the procedure.
Encryption transfers to recipients outside of PayPal would incur a network fee based on their respective blockchain, but transfers between PayPal users will not incur such fees. To protect users’ privacy, the company generates a new recipient address for each transaction in the PayPal account. PayPal will also not charge fees for incoming transfers,
The company is also working to integrate other forms of cryptocurrency services, such as central bank digital currencies, to increase its digital presence. It is also exploring the possibility of launching its own stable coin, called “PayPal Coin”. The discovery came after a developer found evidence of a stablecoin in the source code of the company’s iPhone app.