While other competitors followed its example, such as Mastercard, PayPal is many steps forward, having already collaborated with developers from Bitcoin and Ethereum.
Now, PayPal has added a new feature that makes it easy for clients to buy and sell crypto directly from their personal wallets. So, now you can buy Bitcoin, Ethereum, Litecoin and Bitcoin cash with an easy yap on the screen. However, this is possible only in the US currently, except in Hawaii, and is yet to be available for business accounts, but it might become doable in the future.
PayPal Uses Metamask Wallet for Crypto Transfers
MetaMask started collaborating with PayPal in 2022 but has only included the option of Ether transactions at the beginning of 2023. This collaboration would allow users to buy ETH with MetaMask by connecting their PayPal account as a payment method. Users could also transfer ether from PayPal to their MetaMask wallets.
MetaMask previously deployed a new option for users to buy crypto with fiat money through its dApp portal. The service is available in over 180 countries and supports multiple blockchains, from Ethereum to Celo.
Why does PayPal Want to Introduce Crypto Payments?
PayPal wants to integrate crypto payments within its system to create better payment options for the public and make them more secure, seamless and fast. PayPal has already established solid procedures and has the know-how to adopt cryptocurrency to make it more accessible.
This helps the crypto sector considerably since the lack of regulation around the industry is slowing down the adoption process. Typically, people are advised to refrain from investing in crypto because its high volatility can lead to massive losses of money that cannot be taken back.
Therefore, governments, too, are skeptical about the potential of crypto in their economies and delay decisions about making them legal or, at least, releasing their ban.
Why are Investors Excited About this Collaboration?
The battle for adopting at least Bitcoin continues years after it has become one of the safest digital assets in the market. Ethereum is following similar steps, but considering it offers multiple services besides transactional ones, it has yet to become adopted, even if various companies already use it.
Generally, investors choose to work with crypto because it can leverage great results over time, and even for short-term investments, it can provide a lot of money. At the same time, crypto is not subject to any official institution or government, meaning it’s censorship-resistant and based on decentralization principles.
On the other hand, fiat money and banks are starting to crumble, disappointing numerous citizens. Inflation already affects countries’ economies, and the latest world crisis deepened the issue by increasing the unemployment rate.
Therefore, cryptocurrency provides a certain level of financial freedom because users aren’t limited by companies’ requirements for buying, selling or making any crypto transactions.
However, the problem of volatility remains an unsolved issue. While expert investors are prepared to face it with diversified portfolios and knowledge of bullish and bearish patterns, beginners will experience difficulties since the market is getting tougher. For example, in 2024, Bitcoin will be halved again, meaning its price is expected to boom, and mining will get more challenging. And as more halving will occur until the last bitcoin is mined, owning it will be almost impossible for newcomers over time.
PayPal Pushes Crypto Adoption by Educating Its Clients
Besides the well-received crypto services PayPal offers, this collaboration also helps provide customers with educational material from the mobile app and the website that offers expertly written articles on the basics of crypto. These tips and tricks are quick to access and accessible for every customer, but this information is also available in the FAQ section on the company’s site.
PayPal increases the chances of crypto adoption by making people realize it’s a solution for the future, and while it has its risks, fiat money isn’t that sure anymore. As cash is devaluing in more states, people cannot turn to other options. In developing countries like Algeria, people have turned to Bitcoin to increase their incomes. El Salvador is another example of how Bitcoin can help a nation since it became legal tender recently.
How Can You Buy Crypto with PayPal?
Since buying and selling crypto has become available to the public, let’s see how you can buy these digital assets through PayPal. First, you need an active account on the platform where you verify information like name, address and taxpayer number.
After all is settled, you check the “Finances” option, where you’ll find a tab for crypto. Enter the section displaying the price of assets like Bitcoin and Ethereum, and choose your preferred currency to view the costs.
Upon purchasing the coin, you’ll be required to input the desired amount of dollars for the purchase and then choose a payment method from a debit card, linked account or remaining funds in the PayPal wallet. Make sure to double-check everything before purchasing cause prices can change quite fast. Also, know that PayPal takes a small fee depending on how much crypto you buy. For example, coins that value up to five dollars require only $0.49 for the transaction, while those that reach $1,000.00 can even be taxed with 1.80% of the purchased amount.
Still, if you only want to hold crypto in your PayPal wallet, no fees are involved. This helps numerous investors take better control of their finances.
PayPal has a long history with crypto, the first multinational to gain interest in digital assets. While it has been collaborating with Ethereum developers for some time, it expanded its payment methods to Bitcoin and Litecoin.
The latest update on this cooperation is the ability to buy and sell crypto through one’s PayPal account, facilitating the market and helping newbies have a good start with crypto investments.