PayPal, an American multinational financial technology company, said on Tuesday that it will now allow users to transfer cryptocurrencies to external wallets. The move is two years after the fintech giant opened up its platform to digital currencies such as bitcoin and dogecoin. Initially, this landmark feature will be available to select users across the US and will be rolled out to everyone in the coming months in stages.
“This is really about access and utility,” Jose Fernandez da Ponte, senior vice president, and general manager for PayPal’s blockchain, crypto, and digital currencies business, said in an interview. “We are greatly enhancing the utility of moving crypto around.”
The company claims to have acquired the “Bitlicense”’ from the New York Department of Financial Services which regulates such virtual currencies. Although PayPal Holdings Inc. started allowing its customers to buy and sell Bitcoin, Ethereum, and Litecoin in late 2020 it is the first time that company has allowed the customers to exchange these virtual currencies on its platform. According to the readout on its website, PayPal has also allowed the customers to transfer these coins from crypto exchanges such as Coinbase Global Inc.
For a long time users have been requesting PayPal for this new feature. Since the announcement of it, the shares of the company have surged by almost 0.3%. There is good sentiment about it among the general people.
This is part of Paypal’s strategy to increase its customer base and add new users to its platform. The company is looking for a variety of methods to attract new customers. By introducing this new feature the company has appealed to a larger segment of the society.
During Covid-19 pandemic, a large number of investors and celebrities were seen joining the crypto bandwagon. Despite the fact that the prices of cryptocurrencies are volatile, there is a surge in crypto ventures and investments all around the world.
PayPal is also exploring the options of launching its stablecoin by using blockchain technology and connecting users through web3, non-fungible tokens, and other crypto applications. Although no certain decision has been made in this regard so far.
“We think a substantial amount of commerce and payments will happen on digital currencies in the future, and we are playing the long game,” Fernandez da Ponte said in an interview.