Fintech giant PayPal might be planning to facilitate direct crypto purchase to its some 325 million users. However, the news is developing and there is very little available. PayPal is yet to make all the necessary changes before entering the cryptocurrency world and play a more important role.
PayPal’s connection with Cryptocurrency now
Currently, PayPal is used as an alternative means for withdrawing funds from cryptocurrency exchanges. This new policy would be the first in terms of offering direct sales of crypto. If everything goes as planned, PayPal will allow its users to buy and sell cryptocurrency directly via their PayPal account. “My understanding is that they are going to allow buys and sells of crypto directly from PayPal,” a well-placed industry source said. “They are going to have some sort of a built-in wallet functionality so you can store it there.”
“We are a strong believer in the potential of blockchain. The digitization of currency is only a matter of when not if,” PayPal Chief Technology Officer Sri Shivananda said. PayPal is hoping to have better faith in blockchain than what Telegram had.
It is unclear which or how many cryptocurrencies would be available to buy or sell using PayPal accounts. The industry source said they expected PayPal “would be working with multiple exchanges to source liquidity.” We must wait and see how PayPal will facilitate direct crypto purchases for its users.
There are rumors of this plan going into effect sometime in the next three months, but so far, PayPal has declined to comment on the plans.
How other FinTech apps are doing
Square, the payments unicorn launched by Twitter CEO Jack Dorsey, rolled out bitcoin purchases in its Cash App in mid-2018. Cash App reported $306 million in bitcoin revenue in its most recent earnings report.
London-based Revolut, which began offering crypto to users following a 2017 partnership with Bitstamp, raised $500 million in February, valuing the platform at $5.5 billion. Robinhood, the fintech app thought to be fueling the recent retail boom in equities day trading, first offered crypto in February 2018.
Crypto is increasingly seen as an obvious way to bolster user numbers on fintech apps and create new revenue streams. Indeed, PayPal CEO Dan Schulman has made it clear that his plan this year is to aggressively monetize Venmo, which has over 52 million accounts.