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Does PayPal take Bitcoin?

Paypal takes bitcoin

January 7, 2021 | 

JOHN K MWANIKI |  0 Comments| 

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Gone are the days when people did not know what Bitcoin is and how to use it. Bitcoin's popularity has influenced widespread acceptance and adoption of cryptocurrency spending. Although some jurisdictions still restrict digital currency usage, e-commerce platforms have taken the lead in accepting Bitcoin payments. But, does PayPal take Bitcoin

PayPal merchants can accept Bitcoin. According to a press release, PayPal announced that U.S. account-holders could use virtual coins to buy products and services from its 26 million merchants. They can also buy and sell cryptocurrencies using their accounts and store them in their digital wallet. 

Finally, PayPal takes Bitcoin!

Since 2009, cryptocurrency has risen in popularity as an alternative currency. Cryptocurrency is a digital currency that takes the form and function of real money. But, a central bank does not back it, and there is no physical exchange involved. Instead, users hold their coins in their digital wallets. They can also conduct transactions based on their community's acceptance of cryptocurrency.

PayPal's adoption of digital currencies increases the odds of other online merchants and daily users to adopt them sooner. According to PayPal's CEO, Dan Schulman, the shift to digital currencies is inevitable. It allows financial access and inclusion, speed, resilience, and efficiency. 

In early 2021, online shoppers can convert their cryptocurrency balance to fiat currency. This transaction will occur without compromising the value and no incremental fees. In turn, PayPal merchants will have no extra fees or integrations. 

All transactions will conclude with fiat currency at their current PayPal rates. As a result, this system will increase the utility of cryptocurrency in the digital marketplace. It will also address the previous concerns surrounding cost, volatility, and speed of crypto-based transactions.

Furthermore, the platform will offer its account holders educational content on cryptocurrency. This assists them in further understanding the market and its opportunities and risks. It will also provide a better understanding of the interoperability and redemption of digital currency.

Can you buy and sell Bitcoin through PayPal?

Besides PayPal taking Bitcoin payments, it also secured a conditional cryptocurrency license from the New York State Department of Financial Services. Thus, this payment platform will allow purchases of crypto through Paxos Trust Company, a regulated provider of cryptocurrency services and products. 

Account-holders in the U.S. can buy, hold, and sell crypto from their PayPal Digital wallet. Additionally, there are no service fees for having crypto in a PayPal account. According to the company's CEO, the company plans to expand similar features to Venmo and other select international markets within the first half of 2021. 

PayPal users in the U.S. can hold, buy, and sell select cryptocurrencies through the PayPal App. Once you sell your cryptocurrency, the money goes directly to your PayPal Cash or Cash Plus account. You should also know that the maximum dollar amount for crypto purchases annually is $50,000. Also, the maximum dollar for weekly or single crypto purchases is $20,000.

What does PayPal's acceptance of Bitcoin mean for online merchants?

PayPal believes that Bitcoin and other cryptocurrencies are the waves of the future. But, there are various implications for brick-and-mortar and online merchants. They include:

Decentralized nature of Bitcoins 

Bitcoins are not regulated by a central bank, and it is semi-anonymous. Crypto transactions go to a Bitcoin address and then to a blockchain, which is some form of a public register. The owner of this register is unknown. Also, anyone can set up many Bitcoin addresses, hiding their information even more. So, merchants should secure their Bitcoin transactions and protect their private information. 

Also, you cannot recover your Bitcoin in the event of a fraudulent transaction. Given that there is no centralized regulation for Bitcoin, merchants should be careful. They must also note price fluctuations of the crypto market owing to its volatility.

Low payment fees

The payment processing fees of cryptocurrency transactions are lower than those given by banks and other financial institutions. In some cases, you may find that there are no transaction fees at all. But, this only applies to those using the Bitcoin Network. PayPal charges a flat fee of 2.9% +$0.30 to accept Bitcoins, which low compared to regular bank transaction rates.

Fast transaction processing

Bitcoins are not regulated. Thus, the time spent to process transactions is shorter, with some cases being instant. For instance, you can send crypto from one corner of the world to the other within 10 minutes. This occurs without the possibility of frozen funds and with less than a wire service. Likewise, PayPal offers almost immediate payments. With its incorporation of Bitcoin transactions, merchants can expect their money right after a sale without any delays.

Suitability with mobile applications

Being a digital currency, Bitcoin works very well with mobile applications. For instance, mobile users of the Bitcoin wallet app can make payments or send money through NFC or a QR code. Thus, merchants with systems that handle both mobile payments and Bitcoin can accept such payments in their online stores and physical locations. 

The future implications of PayPal taking Bitcoin

For more than 20 years, PayPal has been at the forefront of the digital payment revolution. The platform leverages technology to make commerce and financial services more affordable, convenient, and secure for its 346 million consumers. With PayPal's Bitcoin integration, merchants have more digital payment options at no extra fee or effort. The move will also serve as a catalyst that will push Bitcoin to the center of the internet stage. Thus, forcing more prominent companies, like Apple Pay, to consider accepting Bitcoin payments.

Conclusion

PayPal's break into the cryptocurrency market has made it easier and more of a reality for everyone to explore this new digital currency field. With the platform's popularity, more people can appreciate cryptocurrency and invest in it. PayPal takes Bitcoin and embraces cryptocurrency. This means that there will definitely be a positive change in e-commerce and how people think about spending money online.

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