- PayPal is one of the largest online payment processors in the world.
- The company recently announced that it will expand its crypto services to the United Kingdom.
- This expansion will allow the citizens of the United Kingdom to buy, sell and hold cryptocurrencies through the PayPal mobile application.
What did PayPal announce?
PayPal Inc announced on August 23, 2021 that it has decided to expand its cryptocurrency services to the United Kingdom. This implies that citizens of the United Kingdom will now be able to buy and sell cryptocurrencies through the PayPal mobile application.
This decision marks the first international cryptocurrency service provided by PayPal holdings outside of the United States. The company has over a million users in the United Kingdom who will now have access to the new service launched by it. They can buy four cryptocurrencies, namely Bitcoin, Ethereum, Litecoin and Bitcoin Cash through their existing accounts in the applications. A ‘Cryptocurrency’ panel will be visible on the application through which they can buy and sell the aforementioned cryptocurrencies.
The buying and selling service was introduced in the United States in early 2021. Since then, the product has gained excess demand due to the unprecedented popularity of cryptocurrencies in America.
The company observed that a similar interest prevailed in the United States and it decided to capitalize on the unexploited demand. In addition to buying and selling, the platform has enabled the customers to pay merchants with cryptocurrencies in exchange for goods and services.
“We are committed to continue working closely with regulators in the UK, and around the world, to offer our support and meaningfully contribute to shaping the role digital currencies will play in the future of Global finance and commerce,” said the vice president of digital currencies at PayPal.
What is PayPal?
PayPal holdings is an American multinational financial technology company. The company deals in the online payments sector in all major countries such as the United States, India, and London.
The company serves as an online payment processor for merchants, institutions and citizens. It charges a fee for rendering such services. PayPal holdings launched its Initial Public Offer in 2002 after which it was taken over by Ebay. Thus, its books of accounts are regularly audited by its board of directors and available to the general public. Later on, the company was spun-off from its holding company and it became an independent company again.
What is its history with cryptocurrencies?
PayPal Inc first started cryptocurrency services in October, 2020. Starting in 2021, it allowed its customer base to use cryptocurrencies as a means to make payments around the world. In providing these services, the financial company has partnered up with the Paxos trust to develop the required technology for smooth functioning of transfer of cryptocurrencies.
The partnership helped PayPal to receive its first cryptocurrency license from the New York Department of Financial Services. This license will allow customers to buy and sell selective cryptocurrencies, namely Bitcoin, Ethereum, Litecoin and Bitcoin cash.
What are the benefits of this service?
The expansion of the cryptocurrency service will have a positive impact on various parties in the following way:
- The PayPal company will witness a surge in revenue from operations due to the expansion of cryptocurrency services.
- The demand for Bitcoin, Ethereum, Bitcoin cash and Litecoin will also increase as a result. This will lead to the appreciation of the value of these coins.
- The citizens of the United Kingdom will have easy access to the aforementioned cryptocurrencies.
- The citizens need not create another account with an exchange to buy and sell digital assets. They can simply do so through their existing accounts at PayPal inc.