PayPal unveils plans of investing in a new crypto-focused business unit
- PayPal unveils plans of rolling out a new business unit that deals exclusively with crypto.
- Per PayPal’s CEO, this development will let users spend their crypto in 29 million merchants.
- PayPal anticipates that this service will go live before the end of Q1, 2021.
PayPal is planning to invest in a new dedicated business unit that deals with crypto and digital currencies. A report disclosed this news on February 3, citing sources familiar with the organization’s operations. Allegedly, the company’s gradual shift toward crypto is part of a broader goal to make it future-proof.
According to the report, Dan Schulman, PayPal’s CEO, brought these plans to light during the company’s earnings day. Explaining why the firm had decided to go all-in on crypto, he said the current financial system is antiquated. Schulman added that through this move, PayPal would tap into the next-generation financial system where completing transactions would be almost instantaneous and cost-effective.
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Schulman went on to note that PayPal envisions a future that creates fair opportunities for everyone to get involved in the digital economy. To this end, he said the company is heavily investing in its new crypto, blockchain, and digital currencies business unit to help this more inclusive future take form.
A significant push toward mass adoption
In his speech, Schulman further noted that the company is planning to help shape the future of finance by letting its customers use their crypto balance to complete transactions after purchasing goods or services from 29 million merchant stores that support PayPal payments. According to him, the company seeks to roll out this feature before the end of Q1. He added that the firm hopes to launch its first international market in the next few months. Apart from this, PayPal seeks to facilitate a Venmo integration with crypto soon.
While these plans show PayPal’s dedication toward embracing the nascent sector, Schulman said that they are just the tip of an enormous iceberg, regarding the company’s roadmap around crypto, blockchain, and digital currencies. He also took the opportunity to disclose that the users that signed up for crypto are now launching their app twice as much as they previously did. This news comes after PayPal rolled out a crypto service for eligible US-based accountholders in October last year. Through this launch, the company allowed the select users to buy, hold, and sell cryptocurrencies directly from their PayPal accounts. The company teamed up with Paxos Trust Company, a regulated provider of crypto products and services, to enable this service.