PayPal launches cryptocurrency services for US business accounts

PayPal Holdings has announced the launch of cryptocurrency services aimed at US merchants. This new feature allows businesses to engage with digital currencies directly from their PayPal business accounts, responding to a growing demand for cryptocurrency capabilities among business owners. However, the service will not be available for business accounts located in New York at this time.

According to Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal, “Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers.” This initiative reflects PayPal’s effort to integrate digital assets into everyday business operations.

The new services include the ability for US business account holders to conduct on-chain crypto transfers. This allows merchants to send and receive cryptocurrencies to and from external blockchain addresses, providing more flexibility in managing digital assets. PayPal’s move to support cryptocurrency for businesses builds on its previous efforts, which began in 2020 when the company first allowed consumers to buy, sell, and hold cryptocurrencies.

In addition to these services, PayPal recently launched its own stablecoin, PayPal USD (PYUSD), which is backed by US dollar reserves. PYUSD is used within the PayPal ecosystem, including for international transfers through Xoom. Recently, PayPal enabled PYUSD on the Solana blockchain, which enhances users’ ability to transact across multiple blockchain networks.

PayPal is also forming partnerships to strengthen its cryptocurrency offerings. Collaborations with platforms like Crypto.com and MoonPay aim to simplify the purchasing of cryptocurrencies. The partnership with Crypto.com enables users to transfer funds easily between PayPal and Crypto.com, while the collaboration with MoonPay allows users to complete transactions through various payment methods.

As PayPal rolls out these new cryptocurrency services, its shares have risen nearly 26% this year, indicating positive investor sentiment. This development reinforces PayPal’s position in the fintech sector and reflects the growing acceptance of cryptocurrencies in mainstream business operations. The impact of these services on PayPal’s market position will be closely observed as the cryptocurrency landscape continues to evolve.

• Read more under:
• Announcements
• BankingTech