PayPal Embraces Crypto Transfers With Other Wallets Due to Customer Demand

Key takeaways:

PayPal has announced the launch of new features, including crypto transfers with other wallets.
Initially, PayPal users could only buy, sell and hold digital assets on the platform without the ability to send or receive crypto to other wallets.
PayPal has also been granted a full BitLicense by the New York Department of Financial Services (NYDFS), paving the way for other crypto financial services, including a possible stablecoin.

PayPal has announced the launch of new features, including the ability of crypto users to transfer and receive digital assets from other wallets. The availability of crypto transfers to and from PayPal with other digital asset wallets resulted from customer demand.

Jose Fernandez da Ponte, SVP and GM of blockchain, crypto, and digital currencies at PayPal, further reiterated that the move was due to customer requests for such a service. He said:

We are definitely responding to demand from users, that is one aspect.

We’ve also been very vocal from the beginning that we’re in this because we are a payments and commerce company, and we think that our role in the ecosystem is about increasing access.

Initially, when crypto services were launched on PayPal in October 2020, users could only buy, sell and hold their digital assets on the platform.

Users can now send and receive Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC) from external wallets, including those from crypto exchanges and non-custodial wallets (software and hardware versions). At the same time, users of PayPal can also send digital assets to other users on the same platform.

Mr. da Ponte further explained the significance of the new crypto transfer feature and its impact on crypto transactions. He said:

Adding the ability to transfer, send, and receive cryptocurrencies is another step in our journey to building a more inclusive and effective financial system.

We’re excited to connect PayPal’s customers to other wallets, exchanges and applications, and we will continue to roll out additional crypto features, products and services in the months ahead.

PayPal was Granted a full BitLicense by the New York Department of Financial Services (NYDFS).

The team at PayPal also announced that the firm had been granted a full BitLicense by the New York Department of Financial Services (NYDFS). The new license was converted from the previous conditional version. Such a license could pave the way for PayPal to offer other crypto financial services, including the rumored stablecoin of PayPal Coin.