PayPal has is currently updating its service to offer 361 million users the possibility to buy, sell, and hold cryptocurrencies through the PayPal app. The cryptos included are Bitcoin, ethereum, and Litecoin.
PayPal’s Venmo app is going to offer peer-to-peer cryptocurrency transactions as PayPal plans to make crypto available as a funding source for purchases at 28 million businesses around the world.
PayPal is going to make crypto mainstream working between consumers and businesses. So, a person could buy and store Bitcoin on the PayPal app and use it to make a purchase at a store or online retailer. Then PayPal will transfer the money to the merchants in dollars or any other currency.
There is also good news for businesses: PayPal now charges them a 2.9% fee on a standard currency transaction via card. But it would charge merchants much less for crypto!
None of this is positive for Visa and Mastercard and other cards that have seen their shares falling about 5% to 6% this year. Square is ahead 1%, and PayPal has risen 6% to recent prices around $248.
Luckily, PayPal isn’t the only digital wallet aiming to take crypto mainstream. Square and its Cash App may be right behind.
However, PayPal may have a larger impact since it is more widely accepted worldwide and has a larger merchant base.