PayPal will allow customers to buy, sell, store bitcoins and other cryptocurrencies, writes Reuters.
According to the company, PayPal customers will be able to use cryptocurrency for purchases from the beginning of 2021.
President and CEOPayPal Dan Shulman said the new service will spur global use of virtual currencies and prepare customers for "central bank and corporate digital currencies."
“We are working with central banks and thinking about all forms of digital currencies and what role PayPal can play in that,” he said.
The company said that PayPal customers in the United States inthe coming weeks will be able to buy, sell and store cryptocurrencies. In the first half of 2021, the company plans to add support for cryptocurrencies for users from other countries.
Other American fintech companies such asSquare and Robinhood also allow users to buy and sell cryptocurrencies, however PayPal is one of the largest payment companies today with 346 million active accounts worldwide. The company processed $ 222 billion in payments in the second quarter.
Cryptocurrency payments to PayPal will be processed using fiat currencies, which means merchants will not receive digital currencies.
PayPal has received a license to work withcryptocurrencies from the New York State Department of Financial Services and is launching its service in partnership with Paxos. This year, Paxos unveiled its product called Paxos Crypto Brokerage, which allows companies to integrate cryptocurrency buying, selling and storing functions into their applications. Revolut US, the American arm of British fintech company Revolut, became the first client of Paxos Crypto Brokerage.