PayPal Expands Crypto Services to U.S. Merchants, Boosting Digital Currency Use

PayPal Holdings has expanded its cryptocurrency offerings, allowing U.S. business account holders to buy, hold, and sell digital currencies directly from their PayPal accounts.

Due to regulatory restrictions, this new service, available across the U.S. except for New York, also enables businesses to send and receive supported cryptocurrency tokens to and from external blockchain accounts.

This move follows the 2020 rollout for consumers, which allowed retail users to engage with cryptocurrencies on PayPal and Venmo.

Bullish News 🚀

🇺🇸 PayPal is now offering US business clients the ability to buy, hold, and sell crypto, expanding its footprint in the digital asset space. pic.twitter.com/FppLQ4hfHq

— Bullish Times (@BullishTimes_) September 26, 2024

According to Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, cryptocurrency, and digital currencies, business owners had long requested access to the same crypto capabilities as consumers.

With this expansion, PayPal aims to meet that demand, providing businesses with a streamlined way to interact with digital currencies, integrating them more seamlessly into global commerce.

Consumer-to-Business Crypto Transition

PayPal’s initial foray into cryptocurrency in 2020 signalled a significant shift in the company’s approach to digital currencies.

The platform’s consumer-focused crypto services were designed to help shape the role that digital assets would play in the broader financial ecosystem.

As Dan Schulman, then-CEO of PayPal, pointed out, the move to digital currencies was “inevitable,” promising improved financial inclusion, speed, and resilience in the payments system.

Now, PayPal’s expansion to business accounts builds on this foundation, aiming to further integrate digital assets into everyday commerce.

PayPal enables business accounts to buy, hold, and sell crypto pic.twitter.com/0TyO6erMCb

— Crypto Briefing (@Crypto_Briefing) September 25, 2024

Merchants can now engage in cryptocurrency transactions just as consumers have been able to since 2020, empowering businesses with greater financial flexibility. This change could potentially lead to increased cryptocurrency adoption among retailers.

PayPal USD and Solana Blockchain Expansion

In addition to expanding crypto services, PayPal introduced its stablecoin, PayPal USD (PYUSD), in August 2023.

This U.S. dollar-pegged stablecoin allows users to fund purchases, convert between cryptocurrencies, and conduct transfers on the PayPal platform.

In May 2024, PayPal further expanded PYUSD’s capabilities by launching it on the Solana blockchain, known for its efficiency in stablecoin transfers.

This integration provides PayPal users with faster, cheaper transactions and increased flexibility across multiple blockchains.

YOU SHOULD KNOW THIS! @PayPal enters the @solana Ecosystem – ideal #blockchain for fast and cost-effective money transfers. A Clip from @SolanaConf w/ @chaos_labs founder @omeragoldberg and @SolanaFndn Head of Payments @SherazShere pic.twitter.com/CVi1HNH7Aw

— Shrinks Studios (@shrinksstudios) September 26, 2024

Solana’s widespread use for stablecoin transfers makes it an ideal platform for PYUSD, allowing businesses and consumers alike to benefit from faster transaction times and lower costs.

The availability of PYUSD on Solana offers greater control for users, giving them access to multiple blockchain options for their cryptocurrency needs.

Key Takeaways:

• PayPal now allows U.S. businesses to buy, hold, and sell cryptocurrencies directly from their accounts.

• PayPal USD (PYUSD) is available on the Solana blockchain, enhancing transaction speed and cost-efficiency.

• Businesses can now engage with cryptocurrencies, boosting digital currency adoption across the commercial sector.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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