PayPal as a payment processor service is tapping into the cryptocurrency system at the moment. The company has currently partnered with Paxos (cryptocurrency company) to launch a new service for buying and selling cryptocurrencies in the US. Individuals in the US who make use of PayPal will be introduced to a new service that will help them buy, sell, and hold cryptocurrencies.
For starters, PayPal is working on supporting Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Once the service is launched users will be able to connect to their PayPal accounts to bull and sell cryptocurrencies with ease.
PayPal plans to launch this service in 2021 to help its users use their cryptocurrencies as funding sources for PayPal. With this, individuals would be able to use cryptocurrencies for their daily purchases with no need to convert their crypto assets first.
Currently, PayPal has been given a conditional BitLicense by the New York State Department of Financial Service. Now, PayPal can launch its crypto service in New York as it partners with Paxos.
This crypto service is been worked on at the moment. Gradually PayPal is pushing its crypto service out. People are already joining the waitlist on PayPal’s website. In the coming months, access to the crypto service will be available. Fees are already being updated by the company as we speak.
What to Expect
PayPal will charge high fees on cryptocurrency-to-fiat and fiat-to-cryptocurrency exchange transactions. The transaction charges will be based on the amount of funds you are exchanging.
TechCrunch said”
You can expect to pay 2.3% for transactions below $100, 2% for transactions between $100 and $200, 1.8% for transactions between $200 and $1,000 and 1.5% for transactions above $1,000. There’s a minimum fee of $0.50 for transactions below $25. The page also says that there will be some spread between buy and sell prices. Fees will be waived until 2021.
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