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With the world around us getting digitized and advanced in technologies that no one ever imagined, the physical to the financial system’s digital shift is inevitable. Apart from the hype that it collects among netizens, Cryptocurrencies like Bitcoin, Bitcoin Cash, Ether, and Litecoins, are gravitating the attention of top investors.
PayPal, one of the most trusted and biggest platforms with more than 360 million users globally, supported the cryptocurrency movement on Tuesday. A Reuter’s report, published on 30th March, revealed its futuristic plans aimed to uplift and promote cryptocurrency. The report revealed that it would allow the usage of cryptocurrencies for online transactions.
The most surprising element in the whole incident is companies’ trust and futuristic vision like PayPal in cryptocurrencies. It comes as a surprise due to repeatedly bogging down the digital currencies by giant companies like Microsoft and Berkshire Hathaway.
Though Bitcoin and other cryptocurrencies existed in the pre-pandemic period, there has been a massive jump in people’s interest in digital currency in the year 2020-21. People began to realize gradually that a decentralized transactions system, free from any hidden layers, was the need of the hour. It happened solely because of the understanding of the people in the block-chain based cryptocurrency and its benefits.
Also, the red tape menaces in the banking system play a significant role in causing the dynamic shift of cryptocurrencies and similar stable coins from mere asset values to real currencies.
This blog would tell you about the integration of PayPal with cryptocurrency-based checkout services.
Also, we have covered the three companies that made similar integrations to promote digital currency like Bitcoin.
PayPal’s integration with cryptocurrencies:
On 30th March, Tuesday, a Reuter’s report disclosed the plans of PayPal to enable payment checkouts using Bitcoin, Bitcoin Cash, Ether, and Litecoins. And it got verified after the official tweet on the PayPal handle. With a video tutorial of the usage of Bitcoins for transactions. The usage on the platform for online transactions is limited to the United States only.
The company has close to 22 million merchants alone in the USA and more than 360 million worldwide. And various reports suggest the rollout of the crypto-based payment feature at a global level in the latter part of 2021. Also, the extension of the Bitcoins-based payments to Venmo, a subsidiary of PayPal, is set to get functional in the upcoming months.
Before PayPal giants like Tesla, Square Cash, and Visa have also incorporated crypto-based payments in their firms. As per the statement of CEO PayPal, Dan Schulman to Reuters, “This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside your PayPal wallet”, it is evident that the company aims at backing the digital currencies.
Though the step of PayPal was sudden, it got predicted at the end of the last year. When the payment service provider allowed the buying, selling, and holding of cryptocurrencies using the platform. And since then, the pathway of a crypto-based payment gateway was free from any obstruction.
Impact of the integration:
Though the cryptocurrency checkout service is available to US users only, the integration would undoubtedly impact a more extensive user base. PayPal has around 22 million merchants alone in the US and more than 360 million users worldwide. The integration lays a foundation of trust amongst the user base of PayPal for cryptocurrencies.
According to various statistics available in the public domain, there are approximately 106 million users of cryptocurrencies.
In the current scenario, masses know about the cryptocurrency, hesitancy & security factor stops them from using digital currencies. PayPal’s checkout service with Bitcoin, Litecoin & Ether verifies the authenticity and eradicates any probability of security issues in the future.
The integration would give the exposure of cryptocurrencies to its vast user base, thereby promoting the legal usage of Bitcoin. Furthermore, Dan Schulman said in a press brief to Reuters that, “We think it is a transitional point where cryptocurrencies move from being predominantly an asset class that you buy, hold and or sell to now becoming a legitimate funding source to make transactions in the real world at millions of merchants”.
His statement shows that PayPal aims to promote digital currencies rather than going bullish after the fiat currency.
3 Companies took a similar step to promote cryptocurrency:
- Square Cash: One of the top rivals of PayPal ranks among the first giants that enabled cryptocurrencies on their platform.
The Twitter CEO’s, Jack Dorsey’s founded Square Cash allowed the usage of Bitcoin in all USA states in August 2018.
And is among the few companies that supported Bitcoin, even when it valued at$6000
- Tesla Inc: Anyone who is active on social media, especially Twitter, would be aware of the open support of Elon Musk, Tesla’s CEO, to the cryptocurrencies. On 24th March, Elon Musk took to Twitter to announce the allowing of Tesla automobiles with Bitcoin. The step of Musk came as no surprise to its consumers because he vehemently supports digital currencies, especially Dogecoin.
Also, in 2021, Tesla purchases bitcoins worth $1.5 billion, which caused a surge in the price of the currency.
According to Musk’s tweet, the transactions done in Bitcoin by the customers would not get converted to fiat currency.
- Visa: This month seems perfect for Bitcoin, as Visa becomes the third company to allow bitcoins on its platform. According to a report published on Reuter’s website, Visa would allow its customers to make payments with cryptocurrencies without undergoing conversion to fiat currencies.