We already knew that PayPal planned to support cryptocurrencies as a means of payment. And now the online payment app announced that US customers can do just that with the “Checkout with Crypto” feature, rolling out today.
After rolling out the ability for US users to buy and sell cryptocurrency directly from their accounts last November, PayPal’s new ‘Checkout with Crypto’ allows users to instantly convert their Bitcoin, Ethereum, Litecoin or Bitcoin Cash into US dollars (without additional transaction fees) that PayPal then uses to complete the transaction. If a merchant does not accept US dollars, PayPal will also convert those dollars to the local currency at standard conversion rates set by PayPal.
The feature will automatically appear in the PayPal wallet if a user has “sufficient cryptocurrency balance to cover an eligible purchase,” and you can see your crypto balances for each currency in the app. However, you can only use one type of cryptocurrency for every purchase you make.
PayPal isn’t the first payment app to support cryptocurrency. In 2018, its competitor, Square, launched support for Bitcoin on the Cash app. But the launch of cryptocurrency as a payment method makes PayPal both an important digital wallet and a cryptocurrency exchange, which could streamline the use of cryptocurrency as a more common payment method. During the Investor Day last week, the company said it did 377 million active accounts