Millions of PayPal merchants may soon have the opportunity to trade in cryptocurrencies on the platform, the company recently revealed.
In the coming months, consumers will be able to use crypto holdings at 29 million merchants worldwide. This service will initially allow consumers in the United States to spend cryptocurrencies when making purchases with millions of merchants worldwide.
This will be good news for people already making use of Bitcoin, Ether, Bitcoin Cash, and Litecoin for daily transactions. They will be able to convert their holdings into fiat currencies at the point of sale.
Only 29 million merchants selected by PayPal will have access to this service, as reported by a previous Reuters report. Cryptocurrencies will be used seamlessly, the way people use credit or debit cards inside the PayPal wallet.
Cryptocurrencies are banned in some countries, but when Elon Musk announced that Tesla would be accepting Bitcoin, the attitude of many changed toward the holding. The company even invested $1.5 billion in cryptocurrency and it sent it to a record high.
Since last October, PayPal allowed users to buy, sell, and hold cryptocurrencies. This helped to boost the rally in digital asset prices. The company hopes that its services can address some of the concerns associated with highly volatile cryptocurrencies.
It hopes to do that by settling the transactions in fiat cash, and so, merchants won’t need to accept the risk themselves.
PayPal issues a statement that said they wish that this is a transitional point where cryptocurrencies will move from being predominantly an asset class that people buy, hold and sell to now becoming a legitimate funding source to make transactions in the real world.
It promises not to charge a transaction fee for people using a cryptocurrency at checkout, and only one type of coin can be used at each checkout.