BUSINESS | Aug 24, 2021 | WOZINGA NEWS
Online Payments Giant PayPal launches cryptocurrency service in UK
- Beginning this week, PayPal will allow British customers to buy, hold, and sell digital currencies.
- It is the first international expansion of PayPal’s cryptocurrency product since its launch in the United States last year.
- PayPal is one of many companies venturing into the largely unregulated world of cryptocurrencies.
By Elah Mae Ariate Wozinga Journalist
Starting this week, the US online payments giant announced that British customers will be able to buy, hold, and sell digital currencies.
It is the first international expansion of PayPal’s crypto product that launched in the United States in October of last year.
Customers can use PayPal’s crypto feature to buy or sell bitcoin, bitcoin cash, Ethereum, or Litecoin for as little as £1. Users can also track cryptocurrency prices in real time and access market educational content.
PayPal, like the US version, is relying on Paxos, a New York-regulated digital currency company. This will allow them to enable crypto buying and selling in the UK. PayPal stated that it has begun discussions with relevant UK regulators to launch the service.
PayPal aims to make it easier for the people to join the market
PayPal’s cryptocurrency service is like Revolut, a British fintech firm. PayPal users, like Revolut users, cannot transfer their cryptocurrency holdings outside of the app, according to CNBC report. Even though Revolut has recently begun testing a feature that allows users to withdraw bitcoin to their personal wallets.
PayPal claims that its entry into cryptocurrency aimed at making it easier for people to participate in the market. “The tokens and coins have been around for a while. However, you had to be a fairly sophisticated user to access them,” da Ponte explained. “Having that on a platform like ours provides an excellent entry point.”
Larger role in e-commerce
While PayPal began with cryptocurrency trading, the company believes digital currencies will play a larger role in e-commerce in the long run. PayPal began allowing US consumers to use cryptocurrency to pay at millions of its online merchants around the world earlier this year. The company also added cryptocurrency buying and selling to Venmo, its popular mobile wallet.
“We definitely have ambitions to continue expanding the product range in the United States. Also in the United Kingdom, and other markets,” da Ponte said.
“We are very deliberate in starting with basic functionality and then seeing where the market takes us.” Different markets have different product appetites.”