According to reports, the Fintech giant PayPal, through its mobile payment subsidiary Venmo, is planning to sell crypto-currencies directly to its 325 million users.
Digital payment giant PayPal plans to offer direct purchases of Bitcoin and other crypto-currencies to more than 300 million users worldwide through its subsidiary, according to a report by Coindesk. Venmo became part of the PayPal company through an acquisition in 2013. By the end of 2019, the payment service had 52 million registered users.
Direct buying and selling of crypto-currencies
According to the persons quoted in the article who are familiar with the matter, “in the next three months or sooner“, it should be possible to buy and sell crypto-currencies directly via PayPal. It remains to be seen which crypto-currencies can be traded, or how far the offered functions will reach. PayPal also plans to integrate a crypto-wallet. For liquidity management, the payment provider is to cooperate with crypto exchanges such as Coinbase and Bitstamp.
Actors in the Fintech industry agree that it was a matter of time for PayPal to develop a crypto product. PayPal founder Peter Thiel is open to crypto currencies. The payment provider was originally also a member of the Libra Association. However, with increasing regulatory pressure on Facebook’s project, the payment service withdrew from the project.
Competitors already offer services with crypto-currencies
Fintech’s main rival, Square, entered the crypto-currency business as early as 2018, when the company introduced Bitcoin transactions in its “Cash App”. In the first quarter of 2020, the service generated revenues of $306 million in Bitcoin alone. Venmo’s competitor currently offers only Bitcoin in its service offering. London-based Fintech company Revolut, in partnership with Bitstamp, is also making crypto available to its users.
Paypal integration would be a further step towards mass adaptation
A large payment provider with over 300 million users would undoubtedly promote the use of crypto-currencies. According to its own information, the company has 277 million active account holders in more than 200 markets worldwide. Consumers can receive money in more than 100 currencies and withdraw funds in 56 currencies. Funds in 25 currencies can be held in PayPal accounts. The addition of Bitcoin or other crypto-currencies would certainly help the entire division to adapt more quickly.