Cryptocurrencies have represented serious competition for PayPal since its debut on the global financial scene. This is especially because the asset class significantly reduces transaction fees that are inherent in traditional payment processors like Paypal, Payoneer, Amazon Pay and the like.
Well, it seems PayPal is paying attention to the saying: "If you can't beat them, join them." According to a recent report from leading cryptocurrency media outlet CoinDesk, the payment firm is prepared to present a purchase and sale service for cryptocurrencies.
PayPal's strategy to allow the purchase and sale of cryptocurrencies
According to him report, a person familiar with the matter revealed that PayPal and Venmo (PayPal's peer-to-peer payment platform) are planning to allow individuals and / or companies to buy and sell cryptocurrencies directly from the platforms. The source indicates that they will introduce "some kind of built-in wallet functionality so you can store it there. ”
The source also notes that PayPal will rely on various exchanges as liquidity providers for transactions. However, it is unclear what specific cryptocurrencies the company will offer its users at the moment.
A different source told the store that PayPal plans to launch this cryptocurrency buying and selling service in the next three months, or even sooner.
It's worth mentioning that PayPal recently hired a chief strategy officer for blockchain and AML, according a working post in March 2020. The chief strategy officer for blockchain is responsible for leading the company's market expansion efforts and identifying blockchain-related partnerships and opportunities.
Although PayPal did not officially confirm the hiring of the blockchain strategist, the job announcement suggests that the company has already completed the hiring process. However, it is unclear whether the newly hired director is part of the cryptocurrency buy / sell startup.
Big boost to crypto adoption
The reason why this is so important to cryptocurrencies is the fact that both PayPal and Venmo have a customer base of almost 400 million. This means that offering a service oriented to cryptocurrencies will expose Bitcoin to millions of users; later bringing the dream of mass adoption closer to reality.
Also, it's worth noting that this is not the first time that PayPal has expressed great interest in digital currencies and blockchain technology. The firm was one of the founding members of the Facebook Libra Association that was announced in June 2019, but was withdrew from the ambitious digital currency project in last october.