PayPal allows users to withdraw Bitcoin to external wallets

[Rikafip]

As the title says, PayPal is finally allowing their users to move their Bitcoin to their own wallets. PayPal went a long way, from getting people banned for buying Bitcoin using PayPal ( I know few people that lost their PayPal accounts due that) to now this. I am just curious how many PayPal users will actually go for that option and start taking responsibility for their own money. Somehow I doubt that number will be huge, bits its a good thing to have that option and is a step in the right direction.

Starting today, PayPal supports the native transfer of cryptocurrencies between PayPal and other wallets and exchanges," said the financial giant in a statement. The ability to conduct external transfers on PayPal's crypto platform, an image of which can be seen below, will start rolling out to users today and be available to everyone in the U.S. in the next week or two.

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[jackg]

That looks like a very fast rollout if it's going to cover the whole of the US within a few weeks.

They opened bitcoin trading/custody in Europe a few months ago too I think so there could be a move to allowing that there too in the next few months.

It'd be interesting to find out if this is being done because crypto is seen as a strong competitor or if it's being done to try to profit off hype (might be both).

[_act_]

I hope this should be true, in regard to cryptocurrencies, I see paper worse than Coinbase and other custododial wallets before as you can buy and sell cryptocurrencies supported by PayPal using PayPal but you can neither receive or send cryptocurrencies, but if Paypal users are able to do that now, it is good to hear, although there are varieties of options before that can be used to access crypto and noncustodial wallet. Crypto gives the ability of self custody, I always wonder why people still prefer to use custododial ways to keep their cryptocurrencies in a way they can never have complete control of their coins.

[DdmrDdmr]

So far, their press release is not mentioning there being fees on behalf of Paypal, and only refers to the necessary network fees:

-   No fees to receive crypto (bitcoin, Ethereum, Bitcoin Cash,  Litecoin) on your Paypal account, other than the network fee you pay when sending them over.

-   No additional fees to send from your Paypal account, other than the network fees (I figure the user won’t have much of a saying here, so there may be some implicit part of these fees kept by paypal if they overcharge and then send at a lower rate – my speculation).

-   No fees at all for sending crypto from one Paypal account to another.

As usual, we’d need to get hold of the detailed information in either the TOS or the Fees page to see if there is any fine print and/or limits/restrictions to bear in mind.

[stompix]

As usual, we’d need to get hold of the detailed information in either the TOS or the Fees page to see if there is any fine print and/or limits/restrictions to bear in mind.

Well, the fees page for the US is still not updated with any potential fees on such transactions but I'm pretty confident at least for a while they will keep their word on this one and keep it to zero, after all this is just a transfer in their internal database just like gifts, the only tricky past will probably be the withdrawals but again they will probably not make such a large fuss from it from the start. But the whole thing about allowing users to get their coins so they are no longer paypalcoins but real bitcoins is indeed a step further, I'm so damn curious how much bitcoins Paypal users have in their wallets, and I have a feeling it's quite a large number, judging by the fact that they had to raise the upper limit twice last year up to $100k.

Quite unexpected, I would have never thought they would allow this.

[cheezcarls]

Although that this is truly a welcoming development for all of us who are into crypto (especially Paypal users who are storing BTC and other cryptos), the fees are the big question here. I am not sure how much fees will be deducted in BTC for external wallet withdrawals. There's no final fee structure yet as of now, but later on they would finally reveal it.

[LoyceMobile]

If they add Bitcoin LN, their users will realize they don't need Paypal anymore

[stompix]

If they add Bitcoin LN, their users will realize they don't need Paypal anymore

You still need a way to buy Bitcoins to send them over LN, right? 

[dkbit98]

This is good coming from PayPal but question is how much fees are they going to charge for that withdrawal, and somehow I highly doubt this is going to be only transactional fee without anything extra.
Even if people can withdraw Bitcoin from Paypal they should know that this BTC will now be connected to their identity, in similar way like withdrawing from centralized exchanges with kyc registration.
I think this is only available for United States so rest of the world will probably have to wait to see Bitcoin support on their paypal account.

[avikz]

As the title says, PayPal is finally allowing their users to move their Bitcoin to their own wallets. PayPal went a long way, from getting people banned for buying Bitcoin using PayPal ( I know few people that lost their PayPal accounts due that) to now this. I am just curious how many PayPal users will actually go for that option and start taking responsibility for their own money. Somehow I doubt that number will be huge, bits its a good thing to have that option and is a step in the right direction.

Starting today, PayPal supports the native transfer of cryptocurrencies between PayPal and other wallets and exchanges," said the financial giant in a statement. The ability to conduct external transfers on PayPal's crypto platform, an image of which can be seen below, will start rolling out to users today and be available to everyone in the U.S. in the next week or two.

It seems that the change management team of Paypal is quick and agile. They are also taking actions based on the market requirements. Because I know many people did not use Pypal's crypto service because they were not allowed to move their bitcoins outside. Paypal's executive team seen that demand and has implemented the change.

Good for people who have purchased bitcoin through a centralized entity like Paypal. It will be interesting to see how many holders actually use this facility to move their bitcoins.

[bitmover]

If they add Bitcoin LN, their users will realize they don't need Paypal anymore

I think nobody really need PayPal,  but an alternative payment method might be good.

It is common to see some discounts using PayPal payment method in Brazil. It might be safe to use it when you are buying something in website where you don't feel safe using your credit card.

It would not be a problem for me if I could add some bitcoin to my PayPal account and pay for an Airline company using PayPal, for example. Sadly, payal and cryptocurrencies are available  only US AFAIK.

[fiulpro]

PayPal realized that if they won't do it, if they won't allow moving to external sources then at the end of the day, the customers will have to choose other bank accounts which will ultimately lead to decrease in the customer inflow and also their business therefore it's only rational to make this decision of supporting Bitcoins as a currency and also allowing inflow and outflow. Also if I remember there are many banks in my country that banned the exchange of Bitcoins and thereby my accounts were frozen I just withdrew and choose to go to some other international bank for trading, it's just business and the need of the hour is cryptocurrencies like Bitcoins.

[BlackHatCoiner]

So, people who use PayPal can now move a thing they didn't have before to begin with. Great move.

I always wonder why people still prefer to use custododial ways to keep their cryptocurrencies in a way they can never have complete control of their coins.

Misinformation, ignorance, arrogance.

If they add Bitcoin LN, their users will realize they don't need Paypal anymore

Not if they need PayPal to move them. 

[franky1]

gotta laugh at some replies..

paypal offer a way to exit a custodial wallet to a sole control address.. and certain replies then hint at a silly altnet that locks funds into a multisig 50% controlled by another party..

.. putting it into an altnet (like certain people shamelessly advertised) still requires the network fee to lock/peg those funds up. and also requires forming a relationship with another entity that you require authorisation from. so ...

jump out of the fire, fall into a pot of boiling water.. .. gotta laugh

[Anonylz]

In the end, PayPal listened to the customer's demand and do what was necessary. When the news of PayPal accepting btc was first published this was the concern of the majority of the BTC community, but now it is no longer an issue, PayPal users are at liberty to either keep or withdraw their btc to a personal wallet, it is up to them. I hope users will be wise enough to do the right thing. Good update.

[Rikafip]

Crypto gives the ability of self custody, I always wonder why people still prefer to use custododial ways to keep their cryptocurrencies in a way they can never have complete control of their coins.

Because majority of people will never want that responsibility, to be their own bank. The more crypto goes into mainstream, the more people will use centralized exchanges and custodial wallets. It sucks, but that's reality and anyone who thinks that people will suddenly open their eyes and ditch all that centralized stuff is extremely naive.

Even if people can withdraw Bitcoin from Paypal they should know that this BTC will now be connected to their identity, in similar way like withdrawing from centralized exchanges with kyc registration.

I don't think that people who are buying Bitcoin via Paypal care much about that, as if the do they certainly wouldn't use PayPal to buy Bitcoin in the first place.

I think nobody really need PayPal,  but an alternative payment method might be good.

PayPal used to be quite useful back in the day when you didn't have much options, but situation is completely different now so I guess they have to introduce some changes to stay relevant.

[dunfida]

As the title says, PayPal is finally allowing their users to move their Bitcoin to their own wallets. PayPal went a long way, from getting people banned for buying Bitcoin using PayPal ( I know few people that lost their PayPal accounts due that) to now this. I am just curious how many PayPal users will actually go for that option and start taking responsibility for their own money. Somehow I doubt that number will be huge, bits its a good thing to have that option and is a step in the right direction.

This does really proves out that everything could really changed unexpectedly even though how centralized they are but still they have reconsidered on adopting bitcoin or integrating it and now they do allow for external

transfers which is something that a good option or good news to those people who would tend to make use Paypal.Yes, the numbers might not really be that great but at least we do really have some choices.

Hope other platforms would be doing the same thing too but lets see on how this recognition would really be more rampant on other services/platforms as well.

[Bitstar_coin]

Congratulations to PayPal users this will be a relief for those who use the platform to buy btc and couldn't withdraw, although I don't think many PayPal users mind, just like the way people don't mind leaving their money in some trusted exchange. I believe PayPal must have some policies that protect users' funds in the event of losses from the company's side.
This is an individual opinion so whether users keep their money in their personal wallet or leave it in exchange is totally up to them.
However, it is better to have the option than not to have it, they really have made tremendous progress since the beginning of this journey.

[Fortify]

As the title says, PayPal is finally allowing their users to move their Bitcoin to their own wallets. PayPal went a long way, from getting people banned for buying Bitcoin using PayPal ( I know few people that lost their PayPal accounts due that) to now this. I am just curious how many PayPal users will actually go for that option and start taking responsibility for their own money. Somehow I doubt that number will be huge, bits its a good thing to have that option and is a step in the right direction.

Starting today, PayPal supports the native transfer of cryptocurrencies between PayPal and other wallets and exchanges," said the financial giant in a statement. The ability to conduct external transfers on PayPal's crypto platform, an image of which can be seen below, will start rolling out to users today and be available to everyone in the U.S. in the next week or two.

It looks like Paypal decided to change their strategy from trying to corner the market by trying to suck in as much Bitcoin as possible to their closed ecosystem, by using their huge existing user base. It actually makes sense from two different angles - they probably don't want a potential headache from customers saying they were missold since the price has started to fall and they're also probably more interested in getting more customers to use their Bitcoin rather than just sit on it as an asset. If there are more people moving money in and out, then there is more opportunity to charge fees rather than the relatively static deposits-only setup. Maybe they are starting to see it as less of a threat and more of a money maker, but they're probably also more confident in the underlying exchange system that they have established as well.

[a1 Hashrate LLC2022]

If they add Bitcoin LN, their users will realize they don't need Paypal anymore

Wrong sellers will realize they don't need Paypal if they have a good reputation.

And buyers will need paypal when they do not trust a seller.

So there is room for both.