PayPal announced the launch of a new service enabling its customers in the UK1 to buy, hold and sell cryptocurrency with PayPal. This new service starts rolling out this week.
Enables access to cryptocurrency for consumers in a secure
and responsible way
Encourages customers to research and learn about the
opportunities and risks in cryptocurrency before transacting
Marks first international expansion of PayPal's
cryptocurrency service beyond the U.S.
Customers can choose from four types of
cryptocurrencies—Bitcoin, Ethereum, Litecoin and Bitcoin Cash. By accessing
their PayPal account via the website or the mobile app, they can view real-time
crypto prices, access educational content to help answer commonly asked
questions, and learn more about cryptocurrencies, including the opportunities
and risks.
This announcement marks the first international expansion of
the company's cryptocurrency offering outside of the United States. With a
trusted brand like PayPal now making an entry, access, knowledge, and the
exploration of cryptocurrency has the potential to become mainstream in the UK.
"The pandemic has accelerated digital change and
innovation across all aspects of our lives— including the digitisation of money
and greater consumer adoption of digital financial services," said Jose
Fernandez da Ponte, Vice President and General Manager, Blockchain, Crypto and
Digital Currencies at PayPal. "Our global reach, digital payments
expertise, and knowledge of consumer and businesses, combined with rigorous
security and compliance controls provides us the unique opportunity, and the
responsibility, to help people in the UK to explore cryptocurrency. We are
committed to continue working closely with regulators in the UK, and around the
world, to offer our support—and meaningfully contribute to shaping the role
digital currencies will play in the future of global finance and
commerce."
Buy, hold and sell cryptocurrency with PayPal
The introduction of this service offers customers a new way
to explore cryptocurrency in the PayPal environment they know and trust.
Customers can start by buying as little as £1 of cryptocurrency through PayPal.
To purchase cryptocurrency, eligible customers can log into their PayPal
account via the website or their mobile app, navigate to the new crypto tab to
view the four cryptocurrencies available and view current pricing and trends.
Customers can choose from pre-determined purchase amounts or
enter in their own purchase amount, before following the prompts to buy the
cryptocurrency of their choice. Customers will be able to fund their PayPal
account for the purchase using their bank account or debit card. If customers
choose to sell cryptocurrency with this new service, funds are normally
available quickly to spend in their PayPal account. There are no fees to hold
cryptocurrency in a PayPal account. There are transaction fees and currency
conversion fees for buying and selling applicable cryptocurrencies.
Create greater understanding and enable access
As part of this offering, PayPal provides account holders
with educational content to help them understand the cryptocurrency ecosystem,
the volatility, risks, and opportunities related to purchasing cryptocurrency.
The company encourages its customers to do their research on the risks and
opportunities for various cryptocurrencies before taking the step to buy, hold
and sell cryptocurrency with PayPal.
Advancing the next generation of financial services
infrastructure
PayPal is one of the largest companies globally to enter the
market for digital currencies with its announcement last October that it would
allow its millions of U.S. customers to buy, hold and sell cryptocurrencies.
This March, the company announced 'Checkout with Crypto'— enabling customers in
the U.S. to use their cryptocurrency alongside other payment methods in their
PayPal wallet to make purchases at businesses around the world. In April, the
company introduced crypto services on its mobile payment service Venmo in the
U.S.
In addition to providing these cryptocurrency services,
PayPal has been exploring the potential of digital currencies through
partnerships with licensed and regulated cryptocurrency platforms and with
central banks around the world. For the past five years, PayPal has increased
its focus on, and invested resources in its internal blockchain research team
to explore the next generation of digital financial services infrastructure and
enhancements to digital commerce.
In the UK, PayPal's new crypto offering which covers buying, holding and selling cryptocurrency will start to roll out this week and will be available within the next few weeks for all eligible customers directly in their PayPal account via the website and their mobile app.