PayPal is going to allow US users to use cryptocurrency to pay online merchants around the world.
According to the company, customers who have Bitcoin, Ethereum, Bitcoin Cash or Litecoin cryptocurrencies in PayPal digital wallets will now be able to convert them to fiat currencies before making purchases. The service will be available at all 29 million merchants that accept PayPal in the coming months.
“This is the first time you can seamlessly use cryptocurrency just like a credit or debit card in your PayPal wallet,” PayPal President and CEO Dan Schulman told Reuters ahead of the official announcement of the innovation.
PayPal hopes that converting to fiat currency before payment can change the fact that sellers do not want to take the risk of cryptocurrency volatility. The company will not charge any transaction fees using cryptocurrencies.
“We think this is a transitional moment where cryptocurrencies are transforming from an asset class that you primarily buy, store or sell to a legitimate source of funding for real-world transactions with millions of sellers,” Schulman said.