PayPal delivers on its promise — US clients can now use crypto
- PayPal has delivered on its promise from several weeks ago, as it added support for crypto.
- For now, this is only allowed in the US; but any US citizen can now buy, sell, or store digital coins.
- The company also has plans for the future, such as allowing support for purchases with crypto in 2021.
Several weeks ago, PayPal announced plans to add support for cryptocurrencies, and start offering users to buy, sell, and store crypto within its platform. Yesterday, November 12th, the company delivered on that promise, announcing that all US users are free to start using its crypto services.
PayPal brings support for four cryptos
According to PayPal, the company dropped the waitlist for the US, already bringing the ability to buy crypto with PayPal directly. Furthermore, the US customers will be alerted of the new feature through push notifications and emails in days to come.
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There has always been a high demand for users to purchase Bitcoin using PayPal. This will help bring exposure to crypto across the country.
One thing to note is that the feature was already available in the US before the announcement, although only partially. PayPal actually started onboarding those interested in using crypto a bit earlier.
However, the company managed to act quickly after making its promise of the arriving support for crypto, and no one has to wait for the new spot to open up anymore.
So far, the firm has seen massive demand from users. So much so, in fact, that it decided to double the weekly crypto purchase limit. Initially $10,000 per week, the limit is now $20,000.
The cost of transactions
As per PayPal’s October announcement, the company currently only offers access to a handful of coins, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. However, it will likely expand this list as time goes by, and it already revealed plans to start allowing users to make purchases with crypto in 2021.
As for the fees, the company will charge $0.50 per transaction for transactions below $24.99. Transactions between $25 and $100 will be charged 2.3% per transaction, and the percentage will drop from there as the amount of money gets higher.
So, those who transact between $100 and $200 will pay a 2% fee, while those between $200 and $1000 will pay a 1.8% fee. Lastly, those who go beyond $1000 will pay a 1.5% fee.
Holding crypto alone will not be charged. Also, to get things started, the firm is waiving fees for the rest of this year.