PayPal Holdings (PYPL-US) announced on Wednesday (25th) that it will now allow U.S. merchants to buy, hold, and sell cryptocurrencies through their business accounts. This expansion marks another milestone in PayPal’s journey toward mainstream crypto adoption.
Cryptocurrency Gains Wider Acceptance
Following the SEC’s approval of Bitcoin ETFs earlier this year, cryptocurrencies have transitioned from a niche asset class to a more widely accepted financial instrument.
Jose Fernandez da Ponte, PayPal’s SVP of Blockchain, Cryptocurrency, and Digital Currencies, stated:
"More merchants are expressing interest in accessing the same crypto functionalities as consumers."
PayPal first entered the crypto market in 2020, enabling customers to purchase, sell, and hold Bitcoin and other virtual currencies via its digital wallet.
In August 2023, the company launched PYUSD, a USD-pegged stablecoin, becoming the first major fintech firm to integrate digital currency payments and transfers.
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Key Features for Merchants
- Crypto Transactions: U.S. merchants can now transfer cryptocurrencies to third-party wallets and send/receive supported tokens across external blockchain addresses.
- Restrictions: Services will initially exclude New York-based business accounts.
- Alternatives: Existing crypto payment solutions like BitPay and Coinbase Commerce remain available.
PayPal’s Market Performance
PayPal’s stock dipped 1.25% to $77.36 on Wednesday but has risen nearly 26% YTD.
FAQs
1. Can international PayPal business accounts use crypto services?
Currently, only U.S. merchants have access, with potential future expansions.
2. How does PYUSD differ from other stablecoins?
PYUSD is fully backed by USD reserves, ensuring stability and compliance.
👉 Comparing Top Stablecoins for Businesses
3. Why is NY excluded from PayPal’s crypto services?
New York’s stringent BitLicense regulations require additional compliance steps.
4. What cryptocurrencies does PayPal support?
Includes Bitcoin, Ethereum, Litecoin, and its proprietary PYUSD.