Will PayPal be a new crypto-exchange?

[Emily Perkins]

Since PayPal just announced that crypto trading and payment services went live in the US, do you think PayPal may turn into a big competitor to existing cryptoexchages? They can also launch a crypto-currency trading desk as well, why not.

[OmegaStarScream]

I don't see this happening to be honest. Centralized exchanges are slowly losing against DEXes, so I don't see how PayPal would do any better. If anything, they're doing much worse than the currently existing platforms by not letting their users withdraw funds to their personal wallets.

And I realize that a lot of people are excited about this, but I just don't see why. Skrill has done the exact same thing some months ago, and no one turned this into a big deal so PayPal should be no different.

[mk4]

I mean, since PayPal already allows the trading of a few cryptocurrencies, then by definition it's already a "crypto exchange".

And I realize that a lot of people are excited about this, but I just don't see why. Skrill has done the exact same thing some months ago, and no one turned this into a big deal so PayPal should be no different.

There's a huge difference though, and that is that PayPal already has 346 million users[1]. While the crypto trading service isn't available for everyone yet, just imagine how much people would have exposure to bitcoin. They wouldn't need to install and register on a separate app for their bitcoin purchases.

[1] https://www.statista.com/statistics/218493/paypals-total-active-registered-accounts-from-2010/

[Emily Perkins]

Agree about 346M users and I myself have a PayPal account, that's a big step for adoption. it's still lacks some features that regular exchanges have but it maybe just the beginning or they can easily establish a partnership (or buy) with some platfrom

I mean, since PayPal already allows the trading of a few cryptocurrencies, then by definition it's already a "crypto exchange".

And I realize that a lot of people are excited about this, but I just don't see why. Skrill has done the exact same thing some months ago, and no one turned this into a big deal so PayPal should be no different.

There's a huge difference though, and that is that PayPal already has 346 million users[1]. While the crypto trading service isn't available for everyone yet, just imagine how much people would have exposure to bitcoin. They wouldn't need to install and register on a separate app for their bitcoin purchases.

[1] https://www.statista.com/statistics/218493/paypals-total-active-registered-accounts-from-2010/

[durilup]

I saw in 2017 PayPal was hiring senior blockchain developers for a new project . I still remember that job offer. In my opinion surely they will join when it comes to "online money" knowing the fact they already have a reputation in this marketplace . My only question is if they would allow users to withdraw cryptocurrencies directly from their platform or would crypto will be locked in

[mk4]

Agree about 346M users and I myself have a PayPal account, that's a big step for adoption. it's still lacks some features that regular exchanges have but it maybe just the beginning or they can easily establish a partnership (or buy) with some platfrom

It sure does lack features of common spot exchanges, but it has enough to be a sort of Coinbase(not Coinbase Pro) competitor. Basically, quick market buys and market sells in just a few clicks. That feature seemed to be enough for the typical not-super-tech-savvy speculator.

[Josefjix]

Since PayPal just announced that crypto trading and payment services went live in the US, do you think PayPal may turn into a big competitor to existing cryptoexchages? They can also launch a crypto-currency trading desk as well, why not.

The existing CEX exchanges are not sleeping behind as well. PayPal just exposed Bitcoin to a great number of their users who had previously not heard about Cryptocurrencies. It seems they wouldn't allow users to withdraw Bitcoin to external wallets perhaps they could have developed an idea which can allow that. What are the things this features has that would cease the patronisers of existing CEXs? I don't think that is happening anytime soon.

[Renampun]

I don't think this will happen...
if indeed PayPal will change to CEX or DEX why are they so late? if Paypal changes the direction of their business, it's the same they are very greedy. PayPal will only focus on their digital wallet business.

[Yamifoud]

They are making their way to capture the demand of the community and become a new crypto exchange. But the question is how the people respond to their announcement since PayPal is one of the centralized exchanges existed today and we know that most traders are preferred to use DEXes than CEX. That was a challenge for them because even though they are known already to the community but talking about crypto exchanges, traders might not taking this opportunity. Instead, they will choose those who can make them more profitable.

[Psynthax]

Don't really know what PayPal might be in the future but PayPal gonna take some quite the amount of exchange market share and that's for sure.
It's now the time for exchange like coinbase to compete with paypal and give it all considering paypal userbase is already so huge literally most of youngsters these day have it. Gonna be quite the competition.

however, in my opinion Paypal just there to give a way selling and buying crypto not really become an exchange.

[kramchers]

Since PayPal just announced that crypto trading and payment services went live in the US, do you think PayPal may turn into a big competitor to existing cryptoexchages? They can also launch a crypto-currency trading desk as well, why not.

As I observed, Paypal was obviously riding the trend of cryptocurrency. So, as long as they will get a nice profit in the future this thing is easy for them to apply, besides they have a large community all over the world, once they start this crypto exchange for sure some of the crytpo enthusiast will support Paypal especially if they paypal users.

[NeuroticFish]

do you think PayPal may turn into a big competitor to existing cryptoexchages?

No. Not at all.
For now PayPal seems to work with IOUs, not actual Bitcoin, with no deposit or withdrawal, right?
That's not crypto exchange. And in the (not too far) future they'll use a third party for handling the exchanges (Paxos?).

All in all PayPal doesn't seem to intend to be crypto exchange. They do their usual business and leave others (partners) handle the exchange part.

[palle11]

Going into an exchange doesn't look like what the focus is for now. I think they are more into wanting to bring the use of cryptocurrency to its subscribers and that they have done. With the idea of exchange, maybe some name can be named after PayPal as exchange but maybe not directly from the team but because the name has been made public acceptability.

[n0ne]

PayPal is already into the cross border transaction service. Now with the addition of bitcoin it makes the cryptocurrency users make use of PayPal. It won't serve as an exchange as Binance or the other leading crypto exchanges available for trading. PayPal will be mainly used by the people who often use paypal for the purpose of cashing out. Now there is no need of finding a trader to exchange bitcoin for PayPal. One can make use of the inbuilt service.

[Findingnemo]

Since PayPal just announced that crypto trading and payment services went live in the US, do you think PayPal may turn into a big competitor to existing cryptoexchages? They can also launch a crypto-currency trading desk as well, why not.

Paypal is kind of exchange but not a complete crypto exchange because you can't withdraw your crypto funds from there (correct me if I am wrong). Which means you can only ise cryptos from your paypal account and also we know that keep crypto assets on online wallets are prone to hacks so one who knows about crypto may not prefer PayPal for their primary needs.

[avikz]

Since PayPal just announced that crypto trading and payment services went live in the US, do you think PayPal may turn into a big competitor to existing cryptoexchages? They can also launch a crypto-currency trading desk as well, why not.

It's not impossible! Paypal is a big business entity with ample of cash ready for investment. So if they sniff the opportunity to make big money out of crypto exchange business, then I see no reason for them not to start a full fledged crypto exchange!

Probably, they have Similar plan in the pipeline, who knows! Probably, they have just taken an initial step to understand more about the market and later they will come up some bigger plan.

Nothing is permanent is the world of business! One prime example is JPM's u-turn about crypto matters. So I won't be surprised if Paypal comes up with a full fledged crypto exchange platform in future!

[Husires]

this shift is for users in the United States, not for all users, and there is a ceiling of 20 thousand dollars per week, which means that the company will target those small investors who want to make profits and then withdraw them to their wallets.

The positive step represents the recognition of some giants of bitcoin, which means forcing governments to add legislative and accepting it.

[Majharul Saiif]

Since PayPal just announced that crypto trading and payment services went live in the US, do you think PayPal may turn into a big competitor to existing cryptoexchages? They can also launch a crypto-currency trading desk as well, why not.

I don't think so. But if they want to start, they can do it easily. Because they have well reputed platform and they can use it for various purposes for their clients according to their need. So it will be easy for them to start. The important thing is that it is centralized and now-a-days Decentralized exchanges are getting more traffic rather than centralized exchanges.

[Kupid002]

Since PayPal just announced that crypto trading and payment services went live in the US, do you think PayPal may turn into a big competitor to existing cryptoexchages? They can also launch a crypto-currency trading desk as well, why not.

No, I don't think they have plan to make their platform as an exchange . They can own an exchange but they will use different platform for that since the website has different use.  If they plan to have it they will surely bought one of the running exchange in the us so they can continue have another  business as one of crypto exchange from us.

[harizen]

Since PayPal just announced that crypto trading and payment services went live in the US, do you think PayPal may turn into a big competitor to existing cryptoexchages? They can also launch a crypto-currency trading desk as well, why not.

Since Paypal reputation was already built for over a decade, that's their advantage against other crypto-exchanges so we can assume they can become a big competitor in the future even there are major issues and problems faced by their customers in the past.

However, the process of becoming a strong and big competitor will take time.

If they will have some good development and lots of new users involve on their platform about their crypto integration, I'm sure they will consider expanding their service across several countries.