Online payments giant PayPal announced on Tuesday that it would be launching a cryptocurrency checkout service to 29 million US-based online merchants. The announcement was a confirmation from the company’s CEO after rumours of the launch started circulating earlier in the day.
No Transaction Fees with PayPal’s “Checkout with Crypto” Feature
The crypto checkout service introduction comes after the digital payment mogul rolled out the buy, hold, and sell cryptocurrency feature last year. With the new PayPal “Checkout with Crypto” feature, users can instantly exchange their cryptocurrencies to fiat. PayPal would then complete the transaction with the merchants. PayPal is rolling out this service starting with leading cryptocurrency by market cap Bitcoin (BTC), Bitcoin Cash (BTC), Litecoin (LTC), and ether (ETH).
PayPal’s announcement comes days after electric car firm Tesla publicized that it will be receiving Bitcoin payments for its cars. PayPal, however, will not be retaining the funds as cryptocurrency. Instead, the payments giant will convert the digital currencies into fiat, which the merchants will receive. Nonetheless, customers will be exempted from the transaction costs of converting the cryptocurrency to fiat.
The Digital Payment Mogul Has Fired A Second Shot
Digital payment mogul PayPal’s “Checkout with Crypto” feature launch is a move that furthers cryptocurrencies’ take over of mainstream finance. The company’s CEO, Dan Schulman, affirmed that the launch is a transitional point for cryptocurrencies being majorly an asset class to a funding source. Furthermore, it is also a strategy to encourage the mass acceptance of digital currencies.
PayPal’s introduction of the buy, hold and sell cryptocurrency feature last year contributed to Bitcoin’s surge (BTC). Mike Novogratz, the CEO of Galaxy Digital, termed the launch as a “shot heard around the world.” Speculations about a positive effect on the four digital coins’ values included in PayPal’s latest crypto service have already started. The online payments giant may have fired a second shot, and the world has heard it.