PayPal has grown to become one of the biggest money transfer companies in the world. Referred to as fintech companies within the money exchange industry, it remains a major player in terms of market influence.
Is PayPal Really Gearing Up For Cryptocurrency Sales?
PayPal has plans to rollout the direct sale of cryptocurrency. This would reach more than 325 million end users of this service. News of these plans were first released by Coindesk.com.
Sources deep in the crypto community released the following series of statements to Coindesk.com on the matter:
Currently, PayPal can be used as an alternative means for withdrawing funds from digital currency exchanges such as Coinbase. But this would be a first in terms of offering direct sales of crypto.
“My understanding is that they are going to allow buys and sells of crypto directly from PayPal and Venmo. They are going to have some sort of built-in wallet functionality so you can store it there.”
“It is unclear which or how many cryptocurrencies would be available. The industry source said they expected PayPal ‘would be working with multiple exchanges to source liquidity.’ “
“A second source confirmed that PayPal is looking to offer buying and selling of crypto. And said the service could be expected ‘in the next three months, maybe sooner.’ PayPal declined to comment on the plans.”
“San Francisco-based crypto exchange Coinbase and Luxembourg-based Bitstamp were mentioned as likely contenders by the sources. Both Coinbase and Bitstamp declined to comment.”
“It’s worth noting that PayPal has a longstanding relationship with Coinbase, going back as early as 2016. In 2018, Coinbase made instant fiat withdrawals to PayPal available for US customers. Last Year, European Coinbase users could withdrawal to their PayPal accounts, followed by users in Canada.”
The most recent earnings report noted $306 million in bitcoin revenue. Revolut is based in London and it began offering crypto to its users in 2017. This past February, a partnership with Bitstamp raised more than $500 million. Revolut’s entire exchange platform is currently valued at $5.5 billion.
Dan Schulman is the CEO of PayPal. He has publicly stated that the company’s offshoot Venmo is a big part of future plans. This service now has more than 52 million accounts. Heading into 2020, PayPal posted job openings for its newly formed Blockchain Research Group. The company went on to hire four engineers in San Jose. Four more positions were added in Singapore.