PayPal will allow Bitcoin buying, selling, and shopping
The system offers much lower transaction fees, which cost businesses a huge amount of money. The 2%-3% that shops pay in credit card swiping fees can obliterate their profits.
Consider this PayPal’s first — but not last — foray into the world of Bitcoin. The company has made clear that its interest in Bitcoin runs more than skin deep.
“When a consumer selects cryptocurrency as a funding source, the cryptocurrency will be instantly converted to fail currency and the transaction will be settled with the Paypal merchants in fiat currency,” the company said in its FAQ section.
Many central banks around the world have expressed their intention to develop digital versions of their currencies in the coming years, while Facebook Inc Led the creation of a cryptocurrency project called Libra in 2019. Paypal was founding member but dropped out after a few months.
“The shift to digital forms of currencies is inevitable,” PayPal President and CEO Dan Schulman said in a statement. He added that providing easy access to the cryptocurrencies market would increase the “efficiency, speed, and resilience” of the payments system.
PayPal says it wants to encourage wider use of digital coins and is also preparing for new types of virtual currencies that may be developed in the future. “We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role,” Schulman told Reuters.
PayPal, which has secured the first conditional cryptocurrency license from the New York State Department of Financial Services, will initially allow purchases of bitcoin and other cryptocurrencies called Ethereum, bitcoin cash, and Litecon, it said. It partners with Paxos Trust Company to offer the service. – Reuters
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