In November 2020, PayPal CEO, Dan Schulman, revealed that – from early 2021 – the company would allow cryptocurrencies to be a funding source for any transaction that takes place across all 28 million of their merchants.
According to a press release dated 30 March 2021, PayPal customers in the US can now make use of a new crypto checkout service, alongside other payment methods in the PayPal wallet.
Customers who hold Bitcoin, Ethereum, Litecoin, or Bitcoin Cash, in PayPal digital wallets will now be able to convert their holdings into fiat currencies at checkouts to make purchases. Customers who pay with cryptocurrencies will incur no transaction fees on purchases. The new crypto checkout feature works as follows:
- At checkout, users will be required to select a payment method. If you have sufficient funds in your crypto wallet to cover the purchase, you will be able to select crypto as a payment method.
- Users can select Bitcoin, Litecoin, Ethereum or Bitcoin Cash to use at checkout. Only one type of crypto may be used for each purchase.
- Once you have chosen your preferred crypto for the purchase, it is then converted to USD by PayPal on your behalf and the transaction is completed.
PayPal CEO, Dan Schulman, can be seen in the video below demonstrating the first checkout with crypto:
“As the use of digital payments and digital currencies accelerates, the introduction of Checkout with Crypto continues our focus on driving mainstream adoption of cryptocurrencies, while continuing to offer PayPal customers choice and flexibility in the ways they can pay using the PayPal wallet,” said Dan Schulman, CEO at PayPal.
Adding that: “Enabling cryptocurrencies to make purchases at businesses around the world is the next chapter in driving the ubiquity and mass acceptance of digital currencies.”