"Checkout with Crypto" Supports Millions of Merchants

Bitcoins volatile nature still makes it more of an instrument for investment than payments. Digital payment giant, PayPal, protects merchants from taking on the risks of volatility through Fiat settlements.

By
Rebecca Asseh
on
April 5, 2021
Category:
Blockchain News

Introduction

The journey towards the global adoption of cryptocurrencies is slowly taking shape. PayPal Holdings, Inc. (NASDAQ: PYPL) has joined the list of companies spreading global crypto adoption with “Checkout with Crypto.” This new feature will be available to millions of global online businesses and PayPal customers will be able to check out with crypto at a PayPal checkpoint. The service will be made available to over 29 million merchants and the service will continue to expand over the coming months. What this means is that PayPal users can now hold Bitcoin, Ether, Bitcoin Cash, and Litecoin in their PayPal digital wallets. This offers users the option to seamlessly convert their crypto holdings into fiat to make purchases. 

Earlier in February 2021, PayPal’s CFO John Rainey had clarified that they would not be investing the company’s funds in purchasing Bitcoin, instead, they would capitalize on the crypto movement. Back in October 2020 PayPal announced that US clients would be able to hold Bitcoin and other digital currencies in its digital wallet. PayPal continues to fulfill its promise by taking crypto global and allowing its users to shop using cryptocurrencies at its supported merchants.


Checkout With Crypto

PayPal’s “Checkout With Crypto” launch is coming barely a week after Tesla Inc announced that it would start accepting bitcoin payments for its cars. While PayPal is focusing on using cryptos for its transactions the same way merchants would with fiat, Tesla would hold the Bitcoin used as payments. At the checkout point, “Checkout with Crypto” will pop up automatically in the PayPal wallet so customers with sufficient cryptocurrency balance can pay for their purchases. Once a customer makes a purchase, PayPal converts the cryptocurrency to fiat currency on the customer's behalf to complete the transaction. Customers will receive a record of items purchased and the crypto sale. No fee will be charged to checkout with crypto, however, a small inbuilt conversion fee will be attached to the conversion from crypto to USD.

While Speaking to Reuter, Dan Schulman acknowledges that the move is cutting-edge with PayPal stating, "This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside your PayPal wallet." He also affirms that cryptocurrencies are beginning to gain real-world usage. "We think it is a transitional point where cryptocurrencies move from being predominantly an asset class that you buy, hold and or sell to now becoming a legitimate funding source to make transactions in the real world at millions of merchants." As it is, Bitcoin is beginning to gain traction amongst mainstream industries. However, its volatile nature still makes it more of an instrument for investment than payments. With digital payment giants like Paypal settling transactions in fiat currency, it will protect merchants from taking on the risks of volatility. With over 375 million consumers and merchants in more than 200 markets, Checkout with Crypto will definitely cause a stir in the crypto pot. 

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Rebecca Asseh

Rebecca Asseh is a crypto and blockchain Writer with an interest in emerging technologies and financial psychology. When she's not writing, she's watching medical and crime shows.

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