PayPal Will Soon Let US Users Buy, Sell and Shop With Cryptocurrency

The company plans to bring digital currencies to Venmo next year, too.
PayPal Will Soon Let US Users Buy, Sell and Shop With Cryptocurrency
Image credit: Allexxandar/Getty Images via engadget

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
2 min read
This story originally appeared on Engadget

PayPal is leaping into the cryptocurrency market, Starting in the next few weeks, users in the US can buy and sell bitcoin and several other digital currencies on the platform. 

Early next year, you’ll be able to use cryptocurrency to pay for goods at more than 26 million merchants who use PayPal. They won’t receive payment in bitcoin, ethereum, bitcoin cash or litecoin, though. PayPal will instead settle payments in fiat currencies, such as the dollar. 

The company will provide information to help account holders understand blockchain tech, the digital currency ecosystem and “the risks and opportunities related to investing in cryptocurrency.” It won’t charge users service fees to buy or sell cryptocurrency through the end of the year, and you won’t have to pay any fees for holding it in your PayPal wallet.

PayPal also plans to bring cryptocurrency to Venmo in the first half of 2021. It hopes to allow users in some other countries to buy and sell cryptocurrency next year too. The New York State Department of Financial Services has granted its first conditional "Bitlicense" to PayPal.

The company's CEO Dan Schulman told Reuters that PayPal hopes the move will encourage global uptake of cryptocurrency. The service is also preparing for central banks and corporations to set up their own virtual currencies. PayPal cited a survey of central banks suggesting a tenth of them are aiming to roll out digital versions of their currencies within the next few years.

PayPal is joining other major digital payment companies such as Square in supporting cryptocurrency. However, PayPal did note that virtual currencies can be volatile, while transactions can be slower and more expensive than with other payment methods. So, it's probably worth exercising some caution when it comes to dealing in cryptocurrency on PayPal (or anywhere else).

More from Entrepreneur
Our Franchise Advisors will guide you through the entire franchising process, for FREE!
  1. Book a one-on-one session with a Franchise Advisor
  2. Take a survey about your needs & goals
  3. Find your ideal franchise
  4. Learn about that franchise
  5. Meet the franchisor
  6. Receive the best business resources
Discover the franchise that’s right for you by answering some quick questions about
  • Which industry you’re interested in
  • Why you want to buy a franchise
  • What your financial needs are
  • Where you’re located
  • And more
Whether you want to learn something new, be more productive, or make more money, the Entrepreneur Store has something for everyone:
  • Software
  • Gadgets
  • Online Courses
  • Travel Essentials
  • Housewares
  • Fitness & Health Devices
  • And More

Latest on Entrepreneur