29 million merchants will soon accept payments from PayPal crypto check-out payment service using Bitcoin, Ethereum, Litecoin, and BitcoinCash.
PayPal has been working on crypto check-out service since last year as announced by Hashant Team. Finally, the official announcement about the launch of the crypto check-out service is out.
Making a big announcement on Tuesday, PayPal Holdings Inc announced that they will be offering their customers in the United States an option to pay for products and services in cryptocurrencies.
This announcement made a significant impact on the crypto market as Bitcoin jumped to $59,000 pretty soon after the news became public.
Why is this a big deal?
PayPal is a big name in the payments world and thus, the news about them offering crypto check-out service in the US will have a big impact on the entire crypto industry.
It will turn out to be a huge boost to the commercial use of digital currencies. PayPal crypto check-out service will make cryptocurrencies part of regular eCommerce purchases.
PayPal’s customers holding cryptocurrencies like Bitcoin, Ethereum, and other supported ones, will be able to pay for products and services by automatically converting their digital assets to fiat currencies.
This is a significant step and soon, 29 million merchants will be able to accept payments via PayPal’s crypto check-out service. Commenting on PayPal’s decision to allow payments in cryptocurrencies, Dan Schulman, President & CEO of PayPal said before the announcement:
“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 & Tesla Setting Examples
Just a week before, Elon Musk, Tesla’s founder and CEO, tweeted that soon Tesla cars will be available for purchase in Bitcoin. Not only that, Tesla will be operating Bitcoin nodes and won’t convert any of the Bitcoins into fiat currency.
As you can see, unlike PayPal, Tesla will keep holding Bitcoin and won’t convert it to fiat currencies.
Will this lead to Mass Adoption?
Starting by the end of 2020 and so far in 2021, cryptocurrencies have made astounding progress. We are in one of the biggest bull runs ever recorded in the crypto space. But the mass adoption of cryptocurrencies is far from reality.
The major reason behind the lukewarm response to the use of cryptocurrencies for payments is its infamous volatility. But PayPal hopes that their decision to offer a crypto check-out service will change it.
PayPal believes that as they are clearing payments in fiat currencies and not in cryptocurrencies, merchants won’t have to worry about the volatility. Hence, PayPal’s crypto check-out service can play a crucial role in starting the move towards mass adoption of cryptocurrencies as a payment instrument.
The interesting part of PayPal’s announcement about offering crypto payment services is that they won’t be charging anything from users to check out with crypto.
It would compel their users to make payments on online sites that accept PayPal payments in crypto. This announcement will act like a snowball effect and soon, more and more companies will start offering crypto payments.