PayPal customers will be able to use bitcoin, ethereum, bitcoin cash and litecoin to shop at the firm’s 26 million merchants worldwide, starting in early 2021. Consumers will be able to instantly convert their selected cryptocurrency balance to fiat currency, with certainty of value and no incremental fees. There will be no additional costs imposed on merchants either, as all transactions will be settled with fiat currency at their current PayPal rates.
The company plans to expand the features to Venmo and select international markets in the first half of 2021.
PayPal expects the service to drive mainstream adoption of crypto-cash as it prepares its network for arrival of central-bank issued digital currencies.
PayPal has teamed up with Paxos, a New York State chartered trust company, to provide cryptocurrency trading and custodial services.
PayPal also has its sights set on a blockchain-based framework for future iterations. In 2019, PayPal Ventures, the company’s venture capital arm, invested in TRM Labs, a company focused on helping financial institutions prevent cryptocurrency fraud and financial crime, and Cambridge Blockchain, a blockchain-based identity management and compliance software company.