PayPal enables ‘Checkout with Crypto’ feature for merchants
PayPal has finally enabled the “Checkout with Crypto” feature which allows users to convert their holdings into fiat currencies along with checking out at millions of merchants accepting cryptocurrencies in their wallets.
The payments giant unveiled an update to its PayPal app that enables the service automatically at checkout for customers with sufficient cryptocurrency balance to cover a purchase. All transactions are settled in the US dollar, the announcement adds, and converted to the fiat currency for the business at the standard Paypal conversion rates.
The service will be available at all of its thirty million merchants, a move that could significantly boost use of cryptocurrencies in everyday commerce. To launch the feature at US retailers that accept PayPal, the payment giant had teamed up with Paxos Trust Company, a regulated provider of cryptocurrency products and services.
UK-based customers will be also able to buy, hold and sell four cryptocurrencies, initially featuring Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Those crypto coins could then be used to buy things from sellers that accept PayPal worldwide.
Elsewhere, the California-based network has been exploring acquisitions of cryptocurrency companies as it plans to expand its embrace of cryptocurrencies.
PayPal confirmed reports surfaced earlier this year that it will acquire crypto security company, Curv, which provides security infrastructure for digital assets.
The news was first reported by Israeli media, which initially estimated the deal tag at around $500 million. However, sources familiar with the matter said that PayPal will pay less than $200 million to buy Curv, which is headquartered in New York, but its research and development offices are located in Tel-Aviv.
PayPal is also looking into the launch of a stock-trading platform for US customers after it hired a brokerage industry veteran to head its “Invest at PayPal” division.
The expansion into the hot retail brokerage industry comes hot on the heels of PayPal’s move to allow its 400 million users to buy and sell cryptocurrencies.
The payment giant apparently sees value in combining trading and crypto transactions with payments as the integration allows customers of its two-sided network, which includes both PayPal and Venmo, to keep or invest their money within the same ecosystem.