PayPal's cryptocurrency ambitions
PayPal is a big player in the online money transfer market. It has even become a household name. Today, this ambitious multinational FinTech company allows people to make payments using not only electronic money but also blockchain-based digital coins. In this article, we will tell you about PayPal’s ambition to become a leader in the provision of cryptocurrency transaction services. We also included a list of the best alternatives to PayPal.
PayPal’s Blockchain Ambitions
The news about PayPal’s plans to support digital currency payments spread quickly and widely on the internet, even though it was not the first of its kind to make such an ambitious move. The company had set up a new business unit to look into the opportunities in blockchain, cryptocurrency, and digital currencies. PayPal also formed a partnership with a regulated blockchain company known as Paxos, with the aim of delivering its crypto transaction services through the new partner.
Presently, Paypal is already a dominant player when it comes to digital currencies. This is due to its expertise in digital payment, the strong network with which it connects more than 400 million active users, and tight security and compliance standards. In addition, its customers can buy, hold, and sell Bitcoin, Ether (Ethereum), Litecoin, and Bitcoin Cash using their PayPal electronic wallets. What’s more, in January, the company confirmed that it was looking into creating its own stablecoin.
Curv – PayPal’s Blockchain Partner
In order to promote a more inclusive financial system, PayPal began the process of acquiring Curv in 2021. Curv is another FinTech company with a highly respected technical team, impressive crypto technology, and a strong entrepreneurial spirit. It is a market leader in the supply of cloud-based infrastructure for the security of digital assets. As of 2022, it provides support for over 200 tokens and coins on many blockchains.
PayPal’s Move into the Cryptocurrency Space
The cryptocurrency services of PayPal were launched in the United States and the United Kingdom in 2020 and 2021, respectively. The company took the bold step despite the fact that cryptocurrencies are still unregulated in the United Kingdom—although the UK government recently announced plans to regulate crypto. While some financial analysts considered the move a simple response to the demand for cryptocurrency transactions, others saw it as an extra layer of risk, cost, and complexity added to the existing cashless payment system.
Why Did PayPal Choose the UK as the First Stop for Overseas Expansion?
One reason why PayPal chose to begin its international expansion with the United Kingdom could be because the country has a good crypto foundation. According to the Financial Conduct Authority, in 2021, about 78% of adults in the UK have heard of cryptocurrencies, and over 2.3 million people hold cryptocurrencies. This meant that many ordinary investors had stopped seeing cryptocurrency as a form of gambling but as an alternative to traditional investment.
In addition, 74% of institutional investors and wealth management companies in the UK said that they had plans to get more exposed to cryptocurrency and other digital assets by 2023. This was the finding of research that was supported by Nickel Digital Asset Management—a leading digital asset management company in Europe.
The silence of the UK concerning cryptocurrency could be another reason. The UK government has no ban on crypto, no imposed restrictions, and no financial law concerning it. This made crypto legal in the UK. However, the government considers crypto-assets as “property” rather than as “legal tender.” That means, in the UK, a cryptocurrency is not a medium of exchange like fiat money. However, this situation might change with time.
PayPal Alternatives for Crypto Usage
There are many other online payment service providers with a strong interest in cryptocurrencies apart from PayPal. They may not be as popular as PayPal, but they are similarly very good for buying and selling things online using Bitcoin and other cryptocurrencies. Many of them also support domestic and international money transfers to family and friends.
Here is our list of PayPal alternatives for cryptocurrency usage:
PayPal is not alone
PayPal is neither the first nor the only payment system to support Bitcoin, Ethereum, and other cryptocurrencies. In this post, we have shown you many PayPal alternatives that are pursuing their blockchain-based digital currency goals. Nonetheless, with the introduction of cryptocurrency as a payment method, PayPal has become a major electronic wallet as well as a payment support provider for cryptocurrency exchanges, including Binance and Coinbase.