What are the benefits of using cryptocurrency with Paypal?
PayPal, one of the leading companies in the field of online payments, has recently announced that it will allow cryptocurrency on the platform for UK users. After launching the same service in the US last year, PayPal tends to widen its presence in the crypto market by scaling the service to another Tier 1 country. A special manager on PayPal’s side responsible for crypto assets states that the product has been doing well on home soil and believes that it will be accepted in the United Kingdom as well.
PayPal was founded in March 2000. Since the beginning, they were putting much effort into building up a seamless and global online payment processing system. Originally they started as a joint company after a merge between Confinity and X.com. The key benefit was that they allowed their customers to pay for goods and services in an easy and secure manner. Due to its high popularity, PayPal was named the #1 choice amongst eBay users which led to the $1.5 billion acquisition in October 2002.
PayPal was among the first online money transfer services that made it possible for users to connect their bank accounts and pay directly from it. In 2015 PayPal got some independence and became a stand-alone company but with strong eBay roots.
PayPal invested millions into its cyber security and technological advancements to deal with identity theft issues. They even developed a special “key” device that was used to approve each transaction before it happens. Aside from this, PayPal users were able to get a refund for any transaction if they are not happy with the goods or services they received. On its way to the top PayPal has acquired more than 25 companies which helped them to be where they are now.
One of the largest acquisitions of PayPal was Honey, a browser extension that automatically applies online coupons on e-commerce websites in November 2019. The acquisition had cost PayPal a whopping $4 billion. In October 2021, the payment giant declared that they have a chain of 26 million merchants accepting PayPal payments in 2021. And now they are into the crypto race.
Next-generation of financial services infrastructure
The financial services sector is changing rapidly. Traditional financial systems change with the growing adoption of Bitcoin and other crypto and this system will probably never look the same. New fundamentals have been put into place when people can send money in minutes with next to zero commissions compared to SWIFT payments which can take a few days to be completed.
Financial institutions must evolve and embrace digital transformation, modernize technology and provide something more than brick and mortar services in this volatile and uncertain world driven by technology. It must be mentioned that the coronavirus pandemic in 2020 has accelerated this process by half a decade and now many UK citizens tend to trade their crypto on Redot.com. Some of the innovations which are the key drivers for this disruption are Blockchain technologies, smart contracts, IoT, advanced analytics, etc. All of these innovations are working in tandem with each other to deliver a brand new approach to the money transfer model which will be faster, cheaper and ABC-easy for customers.
New service in the UK announced
According to the latest announces, the payment giant is to launch a new service targeting UK citizens who want to buy cryptocurrency. Before that, only US customers had an option to buy and sell coins inside of the PayPal interface. In August 2021, PayPal extended these services in the United Kingdom as a first move towards promoting their crypto platform outside of the US.
After SEC is no longer against digital assets, it’s time for technological giants to step in the race to not lose their leading positions. Experts say that the UK market is full of people seeking ways to invest in crypto but not doing this because of the complexity and security concerns. Indeed, for an average UK citizen, it’s not that easy to go through all these steps related to buying and holding different coins compared with how easy it is to do so with fiat money. But we expect this to change with the seamless experiences PayPal provides for its customers.
Buy, hold and sell cryptocurrency with PayPal
This new and exciting launch of PayPal for crypto will allow users to interact with different crypto assets including BTC, ETH, LTC and others. For PayPal, Bitcoin is a good new initiative and first step in the new world of crypto without which it can hardly remain the status of the best online money transfer system.
Now owning Bitcoin and other cryptocurrencies becomes easy with PayPal. There should be new informational sections and real-time crypto prices in the interface after the service is fully launched. PayPal will also educate its customers about the potential benefits and risks associated with cryptocurrency. Customers can buy crypto for as low as 1 pound accompanied by a small PayPal fee. The process of selling Bitcoins should be also easy with PayPal. PayPal is trusted over the whole world and this is a unique opportunity for customers to explore the world of crypto through small investments within a digital which people used for years.
PayPal charges zero fees on holding crypto in your account. The USP of PayPal’s crypto service is the educational content that comes with it. This enables people with minimal knowledge about digital currencies to explore and understand the volatility of the crypto market and the risks involved. It can also enlighten customers about how secure blockchain is making transactions. PayPal is encouraging its users to gain knowledge about crypto before trading which is truly unique.
With the global reach of PayPal and its familiarity amongst users worldwide, their extension of crypto services can only be welcomed. This will simplify buying and selling Bitcoin and increase crypto adoption. We can only hope that they help users understand the market better and act responsibly. PayPal is now a good competitor to Redot in the UK offering crypto trading to UK citizens. However, they still lack the trading feature to be able to attract experienced crypto users.