Paypal has fulfilled the request of many customers by allowing cryptocurrency transfers. They set out a new rule that users can transfer cryptocurrency from their accounts to other exchanges.
Jose Fernandez Da Ponte, the general manager of cryptocurrencies at Paypal, has spoken about this new feature. “This feature was the most demanded from our users since we began offering the purchase of crypto on our platform.” This feature will open many doors for PayPal customers that take advantage of the crypto option.
What does this mean for customers?
Network fees are take care of by the user when they perform cryptocurrency transfers (externally) to other wallets or exchanges. Internal transfers from one PayPal account to another require no fee.
Fernandez da Ponte said, “If users have crypto somewhere else and want to consolidate, they can bring it to PayPal from external addresses. They can also send crypto to anyone who is in the PayPal system.”
October 2020 is when PayPal opened the door to cryptocurrencies. Following this initiative, in March 2021, they enabled a Checkout with Crypto feature. This allows users to checkout of several online businesses and stores by the use of cryptocurrency.
Many believe that allowing cryptocurrency transfers is something Paypal had to initiate eventually. If PayPal wants to stay in the loop of cryptocurrency and its evolving work, they are in the right direction. Fernandez da Ponte mentioned, “This move shows were in this for the long term. I think it’s important to stay the course and continue to invest in the space.”
Where is this new functionality allowed?
This new feature on the PayPal network is currently only available in the U.S. PayPal says it has added an extra identification verification step for users to go through before sending any cryptocurrency. The rollout will be gradual, with select U.S. users allowed to do so starting today and additional “qualified” U.S. customers — those who complete the identification verification procedure — able to do so in the following weeks.