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A cryptocurrency is only as good as the items you can buy with it. Until what feels like very recently, crypto has been a sort of counter culture that was not widely accepted or understood.
However, in 2021 we seem to have turned a corner. More and more places are accepting crypto currency and as a result, it’s becoming a more mainstream form of investment. We have seen companies like Square and Tesla announce that they will be accepting cryptocurrency, but this is of very little surprise. Now, some of the largest payment processors in the world are stepping up to the plate.
This article will discuss PayPal and Visa’s recent announcement to integrate crypto on their networks.
Recently, we have heard that both PayPal and Visa will be accepting cryptocurrency. As reputable and established companies, this is a massive step into the current world and may point to an incoming growth of crypto users. Between PayPal’s 360 million users, and Visa’s 3.6 billion active cards, the potential here for onboarding is enormous. Especially when you consider the number of users in both networks that wouldn’t have otherwise been exposed to crypto before either company integrated it.
Back in 2018, we saw both PayPal and Visa cracked down on cryptocurrency and made steps to actively squash it’s legitimacy. That is no longer the case. On March 30, we saw PayPal announce that they would be allowing customers “with cryptocurrency holdings in the U.S.” to check out with crypto. Not even a month later, it’s an easy-to-use feature on the app.
In the company’s official press release released on the website, PayPal president and CEO, Dan Schulman, was quoted saying: “As the use of digital payments and digital currencies accelerates, the introduction of checkout with Crypto continues our focus on driving mainstream adoption of cryptocurrencies, while continuing to offer PayPal customers choice and flexibility in the ways they can pay using the PayPal wallet…” Although you are not yet able to purchase and hold cryptocurrency in your PayPal account, this is a massive announcement for the crypto industry. PayPal is an accepted form of payment on thousands of online stores and you will now be able to use crypto coins on all of them.
Just because PayPal is getting into the crypto space does not mean they will be accepting all available cryptocurrencies. Out of the 9,000 or so circulating cryptocurrencies, we know there are some not so reputable coins. However, to play it safe, PayPal seems to want to stick with the biggest coins for market capitalisation for the time being.
At the time of this writing, PayPal will allow users to pay with Bitcoin, Ethereum, Litecoin and Bitcoin Cash. All of these very strong and established cryptocurrencies. When making a purchase with any of these virtual currencies, PayPal will automatically convert the money to US dollars for the seller and the buyer will get a receipt for this as well as the crypto purchase.
Hopefully we will see PayPal begin to accept more of the available cryptocurrencies, but for them to accept any at all feels like a major step in the right direction.
In the same breath as PayPal, Visa is making an effort to take a major step into 2021 with the company now allowing customers to use cryptocurrency to settle their debts. As one of the first major companies to do so, Visa is collaborating with Crypto.com to offer customers the ability to purchase items using virtual currency. We can see that in their original article with Retuers where the announcement first surfaced.
According to Cuy Sheffield, Visa’s Head of Crypto, they “see increasing demand from consumers across the world to be able to access, hold, and use digital currencies, and we’re seeing demand from our clients to be able to build products that provide that access for consumers…”
Before this announcement, customers were able to use crypto.com but purchases were transferred to traditional fiat currency. With this new project, Visa will be accepting virtual currency with no conversions required. These transfers will be decentralized using Ethereum blockchain.
What does this mean for crypto? In some aspects, this means very little to traders. The concept of using a PayPal and Visa may make transactions inherently less decentralized.
On the other hand, the more places these coins can be used, the more value they will carry. If we compare 2010 when Laszlo Hanyecz bought two pizzas for 10,000 BTC versus now when crypto owners can buy a Tesla with using as little as two Bitcoin. This proves that more use cases for crypto can make it more valuable.
PayPal and Visa Announce crypto payments on their Networks. As older, established companies like these come forward, it serves as massive steps in crypto’s short trip to mass adoption. Back in 2018, we saw both PayPal and Visa crack down on cryptocurrency and make steps to undermine its legitimacy. Three years later it’s clear that the strength of the market has turned the tables.
PayPal is an accepted form of payment on thousands of online retailers meaning you may now be able to pay for goods and services using crypto. When making a purchase with any of these virtual currencies, PayPal will automatically convert the money to US dollars for the seller and the buyer will get a receipt for this as well as the crypto purchase.
Visa partners with crypto.com to accept cryptocurrency. Before this announcement, customers were able to use crypto.com but purchases were transferred to traditional fiat currency. With this new project, Visa will accept virtual currency with no conversions required.