Coinbase Adds PayPal As Payment Option For U.S. Users

[ConnerDalfino]

"Coinbase now allows users in the US to buy and sell bitcoin and other cryptocurrencies via an integrated PayPal account. Previously, users could only purchase bitcoin from the exchange using either ACH or wire transfer via a connected bank account. PayPal-linked credit cards can’t be used, there’s a purchase limit of $25,000 per day for PayPal users and the exchange will charge 3.99% fees."

-It's hilarious to see PayPal come full circle. They banned buying bitcoin from their platform really early on, but it's now apparently too lucrative to ignore.
-Those fees are insane. (2.5% for deposits, 4% for direct purchases).

What do you think is bullish? Will people be using it?

As I have seen a lot of people complaining about the fees and not letting middleman(PayPal) handle the transactions.

[1715591304]

1715591304

[1715591304]

1715591304

[1715591304]

1715591304

[1715591304]

1715591304

[1715591304]

1715591304

[dkbit98]

People who are longer than few months in crypto will never use Paypal to buy Bitcoin on Coinbase because they would put that BTC in custodial black hole, and you can't spend or send that coins anywhere from your Paypal account.
Second problem I see here is limitation for Paypal/Coinbase to buy maximum $25,000 worth coins per day, that is around 0.46 BTC currently, not enough for many serious investors, and fees could also be lower than they are now.
Paypal needs to change their policy and give more power and private keys to customers if they want to see the real growth, make more profit and see wider crypto adoption, but I guess they don't care about that so much.

[Yaunfitda]

Nah, I don't think this is a bullish sign, smart investors know what is noise behind this and I doubt that they will used Paypal. Although this could be an eye opener for Paypal users, but not for serious and smart bitcoiners. They would rather used other methods, in any case for those who wanted to try crypto then maybe they will dab their hands into this options.

[Wind_FURY]

Nah, I don't think this is a bullish sign, smart investors know what is noise behind this and I doubt that they will used Paypal. Although this could be an eye opener for Paypal users, but not for serious and smart bitcoiners. They would rather used other methods, in any case for those who wanted to try crypto then maybe they will dab their hands into this options.

I believe it IS a bullish sign. The act of the partnership between Paypal and Coinbase is showing that increasing “fiat-medium”/money-processors go towards Bitcoin. Bitcoin is a blackhole for fiat, sucking everything it can in its path.

[elda34b]

The target is definitely new retail investors who want to buy and sell crypto easily, without even learning about the market. Those fees are really ridiculous. It's more like a move to earn as much money as possible while the market is still bullish.

[DaveF]

The other advantage I see, and it's a small one, are those people who want to buy crypto though Coinbase but do not want to give them their banking information.
Yes it costs you a bit, but unless they changed something you are still getting a buffer that Coinbase never sees your banking information.
Also, if you sell on eBay and have funds sitting in your PP account you can now get BTC without moving it to your bank 1st so that is good.

Looking at the currency exchange section here the 3.99% that CB / PP charge is a lot less then the cut that traders want here for buying with PP.
So there is that too.

Yes I know some people do 1:1 but that is rare. Most are in the 5%+ range.

-Dave

[Obito]

The target is definitely new retail investors who want to buy and sell crypto easily, without even learning about the market. Those fees are really ridiculous. It's more like a move to earn as much money as possible while the market is still bullish.

It doesn't matter, a business being established in US are there because of the profit so of course they are going to mark up the prices, I mean what can the users do? There is little to no option in that place so they have to make do with what is on the table and the businesses know this.

[Wind_FURY]

The target is definitely new retail investors who want to buy and sell crypto easily, without even learning about the market. Those fees are really ridiculous. It's more like a move to earn as much money as possible while the market is still bullish.

Although that’s true, you can’t reject the fact that PayPal, a giant in the online-payments industry is building path-ways for its users to connect to an open source project, that probably started in someone’s basement. That’s definitely.

[fladnaG]

Have Binance already done this or are they just going to do it?

[electronicash]

Have Binance already done this or are they just going to do it?

not sure. credit and debit cards are already given but not paypal. they only allow it p2p.

well now that coinbase started it binance might also add it so paypal users will have the chance to  withdraw their btc to their btc wallets. its what is needed for paypal users. i agree that this is targetting the retail investors, small investors.

[Karartma1]

You don't get it.
PayPal is only using bitcoin and crypto to position itself for the next generation of finance which is unfolding right before our eyes.
Having entered the custody space they are now actively integrating all this to do a complete change first in their company and then within the financial ecosystem.
After hating crypto, they're embracing it not to become useless in the future.

[Welsh]

It's more like a move to earn as much money as possible while the market is still bullish.

Yeah, Bitcoin is probably getting the most media coverage as well as several infulencers now promoting either Bitcoin or cryptocurrencies. While this isn't particularly useful in the long run, its definitely increasing the amount of people who are investing in Bitcoin, and while its good news that Paypal now seem very pro Bitcoin, and want a slice of the pie that doesn't mean its going to be a permanent addition, and could easily be removed once this initial hype dies down.

The other advantage I see, and it's a small one, are those people who want to buy crypto though Coinbase but do not want to give them their banking information.
Yes it costs you a bit, but unless they changed something you are still getting a buffer that Coinbase never sees your banking information.
Also, if you sell on eBay and have funds sitting in your PP account you can now get BTC without moving it to your bank 1st so that is good.
-Dave

I'm not all that familar with Paypal I'll be honest. However, wouldn't the invoice which has been generated still have the card number that was used. As far as I know, Paypal has to have a bank card linked to it, which displays account number, and card holder name. So, Coinbase would still have access to that information as a invoice would need to be created.

[philipma1957]

I have a line of credit with paypal.

six months no interest.

Thus I can buy btc with six months to pay.

I will see if they give me the six months to pay with zero interest.

I will come back to this thread and let you know.
I added PayPal to my coinbase account as a payment choice

It routed me to PayPal account and PayPal does the following:

They allow bank
They allow PayPal balance

They do not allow PayPal credit
They do not allow credit cards

So It is not a big deal for me.

It does shield you from coinbase a bit.

[Welsh]

I have a line of credit with paypal.

six months no interest.

Thus I can buy btc with six months to pay.

This would sound really good, but I'm convinced that they've probably written it into their terms, and conditions. This would be huge for a lot of people if people are particularly bullish in the short term. Sounds a little to good to be true, for them to allow though.

You could effectively purchase a large amount of Bitcoin which you wouldn't ordinarily be able to afford (at least all at once) with no interest until 6 months, then if Bitcoin goes higher at any point, you could instantly sell it making up what you paid, and more without any money leaving your Paypal account.  

[philipma1957]

I have a line of credit with paypal.

six months no interest.

Thus I can buy btc with six months to pay.

This would sound really good, but I'm convinced that they've probably written it into their terms, and conditions. This would be huge for a lot of people if people are particularly bullish in the short term. Sounds a little to good to be true, for them to allow though.

You could effectively purchase a large amount of Bitcoin which you wouldn't ordinarily be able to afford (at least all at once) with no interest until 6 months, then if Bitcoin goes higher at any point, you could instantly sell it making up what you paid, and more without any money leaving your Paypal account.  

Just did the setup.  

It allows PayPal balance
It allows bank.

It does not allow PayPal credit
It does not allow credit card.








There may be ways to get around that not sure though.



Now I do have BTC on my PayPal account about $1500 usd worth

I have been buying little pieces of it since October 2020.

What would be nice is to be able to simply transfer btc from PayPal to coinbase and or from coinbase to PayPal.

To all I support actual "real" companies with some btc not all of my btc.

My PayPal 'btc' has always been purchased and never sold. So it has zero tax consequences.

[hugeblack]

I think we have two types of investors: the first type is the one who is exposed to price and is indifferent to technology. These users care about the fees and the price without caring about obtaining private key, and then services such as MasterCard, Coinbase, PayPal will be a suitable option for these type of investors who do not want to be exposed to all the complications.
The second type: They are those who believe in the power of technology, and therefore the private key is the most important. (they are few.)

[Welsh]

The second type: They are those who believe in the power of technology, and therefore the private key is the most important. (they are few.)

Generally, most people looking to get into Bitcoin is with the intention of making enough money, and eventually cashing out for their fiat currency. That is something that's always going to be promoted, and be the main reason why people are getting into cryptocurrencies. If you look at any news article, at least positive ones they usually treat Bitcoin as an investment, and encourage investors to not wait too long until they cash out.

Unfortunately, the complex nature of Bitcoin means it will never be mainstream adopted based on its technicalities, and technology. Despite the Blockchain having significance not only in the financial sector, but multiple other industries too.

What would be nice is to be able to simply transfer btc from PayPal to coinbase and or from coinbase to PayPal.

Probably likely to happen, if not with Coinbase with some other third party exchange.

[kryptqnick]

To be honest, I don't find the fees insane. What's insane is BTC transaction fees from time to time, but paying less than 5% for conversion from fiat to crypto or vice versa sounds like a very good deal for me.
I think it's natural that Coinbase will allow US users to use PayPal because PayPal is integrating cryptos for US users as well, right? So while PayPal wants to work with traditional institutions to ensure that it's fine for people to use cryptos via it, they're also trying to engage with crypto companies and build connections.

[BrewMaster]

-It's hilarious to see PayPal come full circle. They banned buying bitcoin from their platform really early on, but it's now apparently too lucrative to ignore.

it is both hilarious and predicted at the same time.
it was obvious from the start that paypal had problem seeing bitcoin grow and wanted to buy time. that is why they added a lot of restrictions for their users. but as bitcoin keeps growing they are being left behind. in order to catch up they have to do things like this and start partnerships with the biggest bitcoin exchanges such as coinbase to make some money too.

[dothebeats]

There's just not stopping PayPal from capitalizing on the hype that cryptocurrency has to offer. They don't even let users withdraw the actual bitcoin on their platform, so I guess this is the workaround that they come up with instead. It's just a win-win situation for them, though for retail investors this could also be a good starter for them to actually be included in the actual flow of the market. I believe there would be a lot of newbies out there who's going to try to use PayPal on Coinbase just to see if everything works and checks out.