Report: PayPal and Venmo partner to launch direct crypto sales
- Per industry sources, this service could go live within the next three months or less.
- PayPal will reportedly work with multiple crypto exchanges to source liquidity.
- FinTech Apps that offer crypto services are reportedly making large profits.
PayPal is planning to launch direct crypto sales to its 325 million users. A report unveiled this news on June 22, citing three people familiar with the matter. Per the publication, PayPal is currently an alternative payment method for withdrawing funds from leading exchanges such as Coinbase. However, this venture would become its first move towards offering direct crypto sales.
One of the undisclosed sources said,
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“My understanding is that they are going to allow buys and sells of crypto directly from PayPal and Venmo. They are going to have some sort of a built-in wallet functionality so you can store it there.”
At the moment, the number of cryptocurrencies that PayPal will deal with remains a mystery. However, the source noted that the organization will work with multiple exchanges to source liquidity.
A second industry source echoed the sentiments of the first one, noting that PayPal is indeed looking to begin selling and buying crypto. The source added that this service could perhaps go live in the next three months or maybe sooner.
PayPal declined to comment on these plans. Coinbase and Bitstamp, which the sources named as probable candidates also refused to comment. While Coinbase did not disclose whether it is involved in this initiative, it is worth noting that the exchange has had a long working relationship, dating as far back as 2016 with PayPal.
PayPal’s growing interest in the nascent sector
This news comes after PayPal posted job openings to expand its Blockchain Research Group earlier this year. The FinTech posted eight positions in total, four in San Jose and four in Singapore. Before this, the payments firm had joined hands with Facebook and other leading global firms to form the Libra Association. However, the company pulled out after a short while citing regulatory compliance.
According to one of the sources, PayPal decided to focus its attention on developing its payment expertise after its short-lived partnership with Facebook.
Speaking in an interview earlier this year, PayPal’s CTO, Sri Shivananda said that PayPal wants to get its perspective and view on blockchain technology. In so doing, Shivananda noted that the company would better understand the concept of developing an open digital payments platform that can serve everyone.
While Shivananda said he cannot comment on PayPal’s plans, he noted that,
“We are a strong believer in the potential of blockchain. The digitization of currency is only a matter of when not if.”
FinTech Apps that offer crypto continue raking in profits
In the meantime, FintTech Apps that offer crypto buying and selling services are making quick money. For instance, Square introduced BTC purchases in its Cash App in mid-2018. Following this move, the firm announced that it had made more than £245 million in BTC revenue its most recent earnings report. Other FinTech firms that have become successful due to introducing crypto sales include Revolut and Robinhood.
Do you think PayPal has the potential to usher institutions into the crypto space by launching its crypto sales service? Share your thoughts in the comment section below