PayPal to allow cryptocurrency buying, selling and shopping on its network

[iv4n]

It was good news and a good guide.  However, on another topic, I read that bitcoins received via paypal cannot be withdrawn and deposited, only preserved virtually.  Maybe in the future, it opens to fully effective bitcoin exchanges.

I saw the same, it's not going to be simple and easy, PayPal is creating their own virtual banking system! I say who fucks them, I don't use PayPal and I don't plan to use it, if you ask me they are late for this party! They should make some breakthrough years ago, I really don't know why they waited so long, and why this system?
Anyway we will see more about this, they just started with their plans about crypto. I will not use them, but someone from here will try it, and they will give us their honest reviews, I don't expect anything special from them, but let's wait and see what will they do!

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[Vishnu.Reang]

This is a crucial detail, as the ability to buy and hold doesn't bring any utility to bitcoin. There are plenty of places you can already do that, it wasn't a large obstacle. The real benefit of tying Bitcoin functionality into PayPal is getting access to the commerce side of it; being able to buy bitcoin and then spend it at any merchant that accepts PayPal. That would be a big deal. This, not so much.

They are still in testing phase and that is the reason why they haven't enabled withdrawals or payments. The news is that they will offer full fledged services from mid-2021 and then you will be able to transact your coins. I expect the withdrawal and transaction fee to be roughly in line with what we have with various cryptocurrency exchanges. Right now, it is just buying and holding.

[ice18]

It was good news and a good guide.  However, on another topic, I read that bitcoins received via paypal cannot be withdrawn and deposited, only preserved virtually.  Maybe in the future, it opens to fully effective bitcoin exchanges.

So its not available yet worldwide as I cannot see in my Paypal account any crypto wallet, Paypal still really new in crypto and Im sure they have plans regarding buy and sell on its platform and withdrawal maybe they are still in test process with this crypto services but once this was implemented in most supported countries offering to its huge userbase of almost 300m active users then this will really big adoption from Paypal users to become bitcoin holders in the nearest future.

[DashingAgent]

When there are not real bitcoins then do not think that bitcoin is going to anywhere or it will increase the bitcoin marketcaps since these are the fake bitcoins or other currencies generated out of thin air. Not a good news or anything else except the hype itself

Breaking news from REUTERS:

PayPal to allow cryptocurrency buying, selling and shopping on its network

Story link soon

https://twitter.com/annairrera/status/1318877596499824642?s=20


Story as appeared on Reuters:



Developing story:

PayPal to allow cryptocurrency buying, selling and shopping on its network

PayPal CEO on Linkedin:




According to Coindesk this is a consequence of the first ever  “conditional BitLicense” granted by the New York State Department of Financial Services (DFS).

PayPal Granted New York’s First ‘Conditional BitLicense’ to Offer Crypto Services

Canonical crypto regulator, the New York State Department of Financial Services (DFS) has granted the first “conditional BitLicense” to PayPal for a partnership with Paxos Trust Company enabling customers to buy and sell cryptocurrencies.

DFS said Wednesday it was making good on a promise last year from Superintendent of Financial Services Linda A. Lacewell to take a fresh look at its regulatory framework for virtual currencies, with a view to fostering innovation in New York State.

This would imply the launch of the service in the US only, for the moment.

Actually, accessing PayPal from the USA you get the following (thanks to @philipma1957)























Terms and Conditions:


Cryptocurrency on PayPal FAQ




(thanks @Last of the V8s)

Confirmed those aren't real Bitcoin to buy, sell and transfer à la Hype (Hype.it): those are shitty CFD à la Revolut.
Weel, it's a start, and their partnership with Coinbase can get some use (even if Coinbase the most anti-Bitcoin organisation. Make #DeleteCoinbase great again).



This is of course very Big.
PayPal doesn't want Square to take the lead on this space.
The race is on.


After almost 24 hours from the announcement we can draw the first conclusions on the subject:

• PP chose the minimum attrition with regulators. They wanted the product delivered as soon as possible, so they basically created a huge "walled garden" where PP users' bitcoin can exist. Those bitcoins will never touch anything that is fully KYC'd or could be possibly, even remotely connected to "frown upon" activities.
  
• PP provided users with their most desired product: a way to get exposure to BTC price. People want an easy, convenient way to convert their FIAT to BTC and back to speculate on. The other very interesting reason why you should have bitcoins interest a tiny fraction of Bitcoin users. This tiny minority (if you are reading this, you are a candidate to belong to this minority) is maybe the sharpest and more intelligent, but is irrelevant from a numerical, read business, point of view.
• The above statements won't preclude PP the possibility to further develop their product in the future, expanding the possibilities to real BTC trading. So they might already be hedging their positions with real bitcoins. This is something we could consider.
• In Italy we have banks that already offer real Bitcoin Trading perfectly integrated on their platforms. Hype is one of those, for example (read here: Italian Bank offers Bitcoin Wallet Integration in their Online Platform). So this means that every KYC/AML problem can be worked out, providing users with a solid and fully featured bitcoin trading experience. Of course the point is Hype has 1.3 millions users, compared with the 300+ of PP. This is the tiny difference making BTC pop 8%

So is all this news a disappointment? No, for sure not.
But the details are important and the rationale behind those moves are clearly an expression of the reasons why PP acted in the way they decided to.

[laredo7mm]

We are expecting something unique from the platform. There are already some companies that offer this same service so if Paypal wants to be in the highly competitive sector of cryptocurrency then they should find something unique for their users that will add more value to their platform. That won't be a very big deal for a platform like Paypal that already has millions of users.

[SirLancelot]

Withdrawal fee is not something paypal has to decide, it is something blockchain and we decide and we can't expect them to eat up all the fee's neither, if one day they allow withdrawals, that would mean it has to come with a cost because there is a cost of sending/receiving bitcoin to begin with, hence why there will obviously be a reason to charge us for it in order to pay for it as well.

However, the no fee on purchasing or investing is something very cool, most places have trading fee or even other stuff like purchasing fee and so forth which paypal doesn't have. We do not know if they will continue this way or if they will eventually start charging for it but for now they have none and that makes them one of the best places to just invest, but that is all they provide for now.

[aesma]

When there are not real bitcoins then do not think that bitcoin is going to anywhere or it will increase the bitcoin marketcaps since these are the fake bitcoins or other currencies generated out of thin air. Not a good news or anything else except the hype itself

You don't hodl BTC, but PayPal is buying BTC, so that should have some impact on the price.

However, the no fee on purchasing or investing is something very cool, most places have trading fee or even other stuff like purchasing fee and so forth which paypal doesn't have. We do not know if they will continue this way or if they will eventually start charging for it but for now they have none and that makes them one of the best places to just invest, but that is all they provide for now.

Has someone tried to compare the real time price Paypal is offering for BTC with that of an exchange ? It's very possible the trading fee is hidden in the price.

[bryant.coleman]

Has someone tried to compare the real time price Paypal is offering for BTC with that of an exchange ? It's very possible the trading fee is hidden in the price.

I don't think that they will do that, when they advertise that they are not going to charge any fee for purchasing cryptocurrency. These small amounts don't matter for PayPal, as they have a multi-billion capitalization. They can afford to splurge a few hundred million USD in promotional campaigns, unlike the cryptocurrency exchanges. And that's why I am saying that the entry of PayPal changes the status quo in the cryptocurrency market.

[Xxmodded]

The rumor  is  in a weeks PayPal will allow customers to do shopping with crypto which is in my view is more important than just it selling - buying back and forth inside the platform. Through out Amazon  alone they will ensure such a  turnover of crypto that all market should burst at once, a long-awaited event for me because I'm a regular Amazon customer.

This officially news from PayPal can purchase bitcoin through PayPal and costumer not worried when their country block for bitcoin investing could buy with using PayPal. Best solution if your country still not available for using bitcoin as investment asset or trading because with PayPal you can buy bitcoin and some altcoin now. With PayPal being an indirect intermediary if you want to invest in bitcoin, but it is still not allowed in their respective countries. I think there are still countries like India that don't allow investing in bitcoin but they do allow using PayPal. This can actually be used if you want to invest in the world of cryptocurrency even though not through the direct market but through PayPal

[rodskee]

Has someone tried to compare the real time price Paypal is offering for BTC with that of an exchange ? It's very possible the trading fee is hidden in the price.

I don't think that they will do that, when they advertise that they are not going to charge any fee for purchasing cryptocurrency.

But the main concern here is the Real time price and the value to Bitcoin or those other coins accepted for payment.

These small amounts don't matter for PayPal, as they have a multi-billion capitalization. They can afford to splurge a few hundred million USD in promotional campaigns, unlike the cryptocurrency exchanges. And that's why I am saying that the entry of PayPal changes the status quo in the cryptocurrency market.

I don't think that is true,as paypal known for their Money strict policy so even small amount will always matter as this currencies are very volatile and may change value in a short period of time.

That's good idea PayPal they launch a good idea surely makes people happy because they can buy and pay bills trough PayPal. Many people are lazy to bring a cash or wallet and now they can use paypal for paying I love their idea so much.

Lol why people must be happy when we can also do this using fiat with fixed value not like crypto that can change easily in value.

[justdimin]

It was good news and a good guide.  However, on another topic, I read that bitcoins received via paypal cannot be withdrawn and deposited, only preserved virtually.  Maybe in the future, it opens to fully effective bitcoin exchanges.

Actually that might be because storing and withdrawing BTC can be a little confusing for people who are new and most of the paypal users won't have the right knowledge of how to use and handle private keys so maybe it is better to just let them store BTC in their wallet like they store dollars and other currencies. I also heard that we can spend BTC like if a merchant accept BTC we can pay them via BTC itself, not 100% sure of that news though because the article was a little confusing.

I believe the overall impact is good and more merchants will now accept bitcoins hopefully since it is being backed by paypal which is no doubt one of the largest online payment processor.

[aesma]

Has someone tried to compare the real time price Paypal is offering for BTC with that of an exchange ? It's very possible the trading fee is hidden in the price.

I don't think that they will do that, when they advertise that they are not going to charge any fee for purchasing cryptocurrency. These small amounts don't matter for PayPal, as they have a multi-billion capitalization. They can afford to splurge a few hundred million USD in promotional campaigns, unlike the cryptocurrency exchanges. And that's why I am saying that the entry of PayPal changes the status quo in the cryptocurrency market.

I've been using Paypal for two decades. They're in it for the money. It used to be that they charged 3% when selling something on eBay, and you couldn't ask the buyer to pay these fees (or even share them). Really annoying when your margin is small already.

The fees don't need to be high, exchanges usually offer trading fees that are less than 1%, it's very easy to hide a fee of 0,25% for example in the price. If I compare the price between various exchanges : https://cryptoradar.co/buy-bitcoin a more than 0,25% difference is common.

[redsun114]

There are already some companies that offer this same service so if Paypal wants to be in the highly competitive sector of cryptocurrency then they should find something unique for their users that will add more value to their platform. That won't be a very big deal for a platform like Paypal that already has millions of users.

Actually them adding bitcoins is a huge success already and I don't know which platforms also allow bitcoins which are similar to paypal so maybe you want to name them? Anyways a great news and some amazing adoption for the bitcoin users and some even say the recent bull run was aided to some extent by this move.

That's good idea PayPal they launch a good idea surely makes people happy because they can buy and pay bills trough PayPal. Many people are lazy to bring a cash or wallet and now they can use paypal for paying I love their idea so much.

Mate, we are not discussing about Paypal in general as I know its a great platform but we are here to discuss about their recent move of adding bitcoins to their platform and allowing users to buy and sell bitcoins through paypal.

[drlukacs]

Although Paypal is a reputable payment channel and does not charge transaction costs, the price is quite different from Cexs.  it will fall between 1-> 2.5% and the buyer or seller will incur that difference.
Besides, they can collect our transaction information easily and provide it to government agencies.  So when we have to pay taxes, we lose more.
I think the black markets will still be the best place to trade because the spreads are low there and we are not afraid of information leaks.

[Vishnu.Reang]

I've been using Paypal for two decades. They're in it for the money. It used to be that they charged 3% when selling something on eBay, and you couldn't ask the buyer to pay these fees (or even share them). Really annoying when your margin is small already.

The fees don't need to be high, exchanges usually offer trading fees that are less than 1%, it's very easy to hide a fee of 0,25% for example in the price. If I compare the price between various exchanges : https://cryptoradar.co/buy-bitcoin a more than 0,25% difference is common.

Obviously when they have the monopoly, they will be able to charge higher fees. But unlike the case with fiat currency payments, attaining a monopoly with Bitcoin payments will be very hard. Since Bitcoin is a decentralized asset with a very high level of liquidity, PayPal will never achieve any sort of monopoly in that sector, although they may try really hard to attain it.

[mixerbtc]

We're still waiting for the day when these mainstream payment processors will provide you with the actual coins, not just virtual coverage. Remember, with services like PayPal and Revolut, you don't own your coins!

[bittick]

This is what the first transaction of buying bitcoin with PayPal looks like:



Circle CEO Jeremy Allaire hinted that the function is now available for a limited number of persons.

Looks kinda neat tbh but is it paypal that provides the btc as an exchange or just become middleman here?
I think if paypal really trying to make profit off crypto might aswell start their own exchange and gain profit from the margins but it might be complicated for a major corporation like them.
Still glad that now paypal account could be more of use than just buying things off amazon.

[Oneandpure]

This is what the first transaction of buying bitcoin with PayPal looks like:



Circle CEO Jeremy Allaire hinted that the function is now available for a limited number of persons.

Looks kinda neat tbh but is it paypal that provides the btc as an exchange or just become middleman here?
I think if paypal really trying to make profit off crypto might aswell start their own exchange and gain profit from the margins but it might be complicated for a major corporation like them.
Still glad that now paypal account could be more of use than just buying things off amazon.

Good looking now you can hold and save bitcoin not only on bitcoin wallet exchange like Binance or Huobi but now you available hold and then save your bitcoin assets in PayPal. For the future will give easy way how to be investor in bitcoin after PayPal allowing purchase bitcoin trough PayPal, but just have little disadvantage from PayPal how at the future your security more safety because when have some thing wrong we always need to upload our identity, by the way how next time if PayPal permanently limited and have bitcoin in their wallet, need waiting for six month to get back bitcoin assets or not, I think have be decision for investor hold and save bitcoin in PayPal account.

[Rexler]

Yeah, I heard the news, its really good that  PayPal now accepts bitcoin, so glad we can finally buy and sell our crypto on the PayPal platform , although it's not the actual bitcoin it's a virtual one,I guess this is what made bitcoin to start pumping, because with more adoption thre will be high demand for it in the market, and we all know the laws of demand and supply, but I fear they are some cons to this adoption like PayPal is a centralized platform and I do see some people tell stories about their experience using it, most of them complained of getting banned for no good reason, without been able to even collect money from their PayPal wallet,does it mean it's PayPal is not a safe heaven? .

[aesma]

This is what the first transaction of buying bitcoin with PayPal looks like:



Circle CEO Jeremy Allaire hinted that the function is now available for a limited number of persons.

Looks kinda neat tbh but is it paypal that provides the btc as an exchange or just become middleman here?
I think if paypal really trying to make profit off crypto might aswell start their own exchange and gain profit from the margins but it might be complicated for a major corporation like them.
Still glad that now paypal account could be more of use than just buying things off amazon.

Paypal is the middleman. They pay Paxos to do the actual Bitcoin buying/selling. I guess they don't want to become an exchange, they want to use BTC as another payment currency.