PayPal launched Checkout with Crypto today. The new development enables users with cryptocurrency holdings to seamlessly transact using crypto at the online point of sale. Starting today, U.S. shoppers can make purchases using crypto at millions of online businesses.
The new Checkout with Crypto payment option will automatically appear in U.S. users’ PayPal wallets at checkout when they have a cryptocurrency balance of Bitcoin, Litecoin, Ethereum, or Bitcoin Cash that will cover an eligible purchase. Because PayPal makes money when users buy and sell cryptocurrencies on its platform, it is not charging additional transaction fees.
“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,” said PayPal President and CEO Dan Schulman. “Enabling cryptocurrencies to make purchases at businesses around the world is the next chapter in driving the ubiquity and mass acceptance of digital currencies.”
Essentially, Checkout with Crypto works behind-the-scenes of a transaction to help customers sell cryptocurrency through the PayPal platform. PayPal then uses it to pay a merchant, who receives U.S. dollars in exchange. Because of the embedded nature of the tool, the process happens in one seamless flow at checkout.
There are a few restrictions around Checkout with Crypto. First, the tool is only available to U.S. users. Second, purchases must be eligible. Finally, users can’t split the payment among currency types. In other words, in order to make a purchase in cryptocurrency, they must have a sufficient balance of a single cryptocurrency.
In the coming months, PayPal plans to expand the service to its full list of 29 million online merchant clients across the globe.
This move expands PayPal’s previous cryptocurrency capabilities. In partnership with Paxos, PayPal began enabling users to buying, selling, and holding crypto last October.