PayPal, an American online payments firm, recently announced that it shall permit the use of cryptocurrency in the US for making payments at several online merchants worldwide.
What is the new feature of PayPal?
The new feature of PayPal is called ‘Checkout with Crypto’ that was rolled out today and is an extension to the current facility provided to US users. Till now, the platform enabled users to buy and sell cryptocurrency straightaway via their accounts. With the ‘Checkout with Crypto’, the users will not only be able to make transactions but also immediately change their Bitcoin, Bitcoin Cash, Ethereum, or Litecoin to US dollars.
According to Dan Schulman, President and CEO of PayPal, “This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside your PayPal wallet”.
PayPal wants to encourage people to use cryptocurrency as a significant mode of payment. As a result, the company will not charge any intermediate fee for making transactions in cryptocurrencies. Moreover, the fiat conversions will occur as per the standard PayPal conversion rates.
How to use the new ‘Checkout with Crypto’ feature?
The users in the US can find the new ‘Checkout with Crypto’ feature in their PayPal wallet. It must be noted that the feature will only appear if the user has a minimum cryptocurrency balance for making an eligible purchase.
The app will display the crypto balances for kinds of cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. According to PayPal, the user will be allowed to use only one type of cryptocurrency for making a purchase.
What is the significance of the new ‘Checkout with Crypto’ feature for PayPal and Tesla?
PayPal is one of the most preferred digital platforms across the globe. The new ‘Checkout with Crypto’ feature is expected to make the company a reliable cryptocurrency exchange medium as well.
According to Dan Schulman, President and CEO of PayPal, “Enabling cryptocurrencies to make purchases at businesses around the world is the next chapter in driving the ubiquity and mass acceptance of digital currencies”.
PayPal’s new feature will also open new payment options for the associated brand Tesla. PayPal announced the new feature only a week after Elon Musk, Tesla’s CEO revealed that people can make payments in bitcoins for buying Tesla cars. The electric vehicle company even bought $1.5 billion worth of cryptocurrency to show that it is interested in offering flexibility and diversity in the investments and returns.
However, this will not be valid in many countries such as India. The Indian Government or banks do not recognise cryptocurrencies.
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