PayPal has announced that it will allow U.S. business customers to buy, hold, and sell cryptocurrencies directly from their accounts. This move aims to respond to the growing demand among business users who want the same cryptocurrency capabilities that consumers enjoy. However, it is necessary to mention that, at the start, this feature will not be accessible to businesses registered in New York State.
Merchants to Gain Cryptocurrency Capabilities on PayPal and Venmo
Jose Fernandez da Ponte, senior vice president for blockchain and cryptocurrency, said that understanding how customers want to engage with cryptocurrencies is important when adding cryptocurrencies to PayPal and Venmo for individual customers. Merchants remain interested in similar capabilities, and PayPal is ready to satisfy the demand, making it easier for business owners to work with cryptocurrencies.
Furthermore, the product will provide the functionality to purchase, sell and credit cryptocurrencies to qualified third-party wallets for American merchants. This means users who hold business accounts and transact in supported cryptocurrencies can directly transact with supported electronic currencies to and from users outside the blockchain address, thus increasing the use of such currencies in business transactions.
PayPal has been increasingly trying to popularise cryptocurrency starting from 2020 when it offered its users a feature to purchase, trade, and invest in cryptocurrencies. Later, in 2023, they launched a stablecoin called PayPal USD (PYUSD) that is based on the US dollar. This year, they expanded the PYUSD into their Xoom service, which allows people to send money to friends and family overseas without any transaction fees if they use PYUSD. More recently, PYUSD has also been launched with a Solana decentralised network to provide more flexibility for users when making decentralised transactions.
Lastly, PayPal’s most recent statement is a step toward improving the utility and convenience of cryptos for business consumers and points to a more significant adoption of digital currencies in the overall economy.
