PayPal Enables Business Accounts to Buy, Hold and Sell Cryptocurrency

Rhea-AI Summary

PayPal Holdings, Inc. (NASDAQ: PYPL) has announced that U.S. merchants can now buy, hold, and sell cryptocurrency directly from their PayPal business accounts. This functionality will not be available in New York State at launch. Additionally, PayPal is enabling U.S. merchants to externally transfer cryptocurrency on chain to third-party eligible wallets.

This move is part of PayPal's ongoing efforts to increase cryptocurrency's utility. The company has previously introduced cryptocurrency capabilities for consumers on PayPal and Venmo, launched the PayPal USD (PYUSD) stablecoin, enabled PYUSD as a fee-free funding instrument for Xoom transfers, and made PYUSD available on the Solana blockchain.

Positive

• Expansion of cryptocurrency services to U.S. merchants
• Enabling external cryptocurrency transfers for business accounts
• Increased utility and functionality of cryptocurrency within PayPal ecosystem

Negative

• Functionality not available in New York State at launch

Insights

Cryptocurrency Expert

PayPal's expansion of cryptocurrency services to business accounts marks a significant milestone in the mainstream adoption of digital assets. This move allows millions of U.S. merchants to directly engage with cryptocurrencies, potentially increasing their utility and acceptance in everyday commerce. The ability to buy, hold, sell and transfer cryptocurrencies externally opens up new possibilities for businesses to manage their digital assets more flexibly.

The introduction of these features could lead to increased transaction volumes and revenue for PayPal, as businesses may be more inclined to use the platform for crypto-related activities. However, it's important to note the regulatory landscape, as evidenced by the initial exclusion of New York State from this rollout due to stricter crypto regulations.

PayPal's gradual approach to crypto integration, from consumer wallets to business accounts and the launch of their stablecoin PYUSD, demonstrates a strategic long-term vision for cryptocurrency adoption. This could position PayPal as a leader in bridging traditional finance with the crypto ecosystem, potentially attracting more users and increasing platform stickiness.

Financial Analyst

This development could significantly impact PayPal's revenue streams and market position. By enabling businesses to interact with cryptocurrencies, PayPal is tapping into a growing market segment and diversifying its service offerings. This move may lead to increased transaction volumes and fees, potentially boosting the company's financial performance.

The expansion of crypto services could also enhance PayPal's competitive edge against both traditional financial institutions and crypto-native platforms. It may attract new business customers and increase retention of existing ones, contributing to user growth and engagement metrics that are closely watched by investors.

However, investors should be aware of the potential risks, including regulatory scrutiny and the volatile nature of cryptocurrencies. The impact on PayPal's balance sheet and risk profile will need to be monitored closely. Overall, this strategic move aligns with the growing trend of fintech companies embracing digital assets, which could be viewed favorably by the market if executed successfully.

Company also provides the ability for business accounts to externally transfer cryptocurrency

SAN JOSE, Calif., Sept. 25, 2024 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) announced it is enabling its U.S. merchants to buy, hold and sell cryptocurrency directly from their PayPal business account. At launch, this functionality for Business Accounts will not be available in New York State. Today's announcement is PayPal's latest step to increase cryptocurrency's utility by making increased functionality available to millions of merchants in the U.S. 

"Since we launched the ability for PayPal and Venmo consumers to buy, sell, and hold cryptocurrency in their wallets, we have learned a lot about how they want to use their cryptocurrency," said Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies, PayPal. "Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers. We're excited to meet that demand by delivering this new offering, empowering them to engage with digital currencies effortlessly."

Additionally, PayPal is enabling U.S. merchants to externally transfer cryptocurrency on chain to third-party eligible wallets. PayPal business account holders can now send and receive supported cryptocurrency tokens to and from external blockchain addresses.

PayPal has continuously made significant steps to increase cryptocurrency's utilization. In 2020, PayPal announced the availability of its customers to buy, hold and sell cryptocurrency directly from their PayPal and Venmo accounts. In 2023, PayPal announced the launch of a U.S. dollar-denominated stablecoin, PayPal USD (PYUSD). In April 2024, we enabled PYUSD as a funding instrument for our Xoom platform, allowing users to pay no transaction fees when using PYUSD to fund eligible transfers to friends and family abroad. Most recently, PYUSD was made available on the Solana blockchain, providing users with the choice of multiple blockchains allowing for increased flexibility and control.

About PYUSD

PayPal USD is issued by Paxos Trust Company, a fully chartered limited purpose trust company. Paxos and its products – including expansion to new blockchains – are licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services. Reserves for PayPal USD are fully backed by U.S. dollar deposits, U.S. Treasuries and similar cash equivalents, and PayPal USD can be bought or sold through PayPal and Venmo at a rate of $1.00 per PayPal USD.

Issuance and custody of PayPal USD is performed by Paxos Trust Company, LLC. Learn more in PayPal's Cryptocurrency Terms, and in the Paxos Terms that also apply to PYUSD.

About PayPal

PayPal has been revolutionizing commerce globally for more than 25 years. The company creates innovative experiences that make moving money, selling, and shopping simple, personalized, and secure. PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com, https://about.pypl.com/ and https://investor.pypl.com/.

Media Relations Contacts: 
Nicole Cutler
mediarelations@paypal.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/paypal-enables-business-accounts-to-buy-hold-and-sell-cryptocurrency-302259069.html

SOURCE PayPal Holdings, Inc.

FAQ

What new cryptocurrency features has PayPal (PYPL) introduced for business accounts?

PayPal has enabled U.S. merchants to buy, hold, and sell cryptocurrency directly from their PayPal business accounts. Additionally, business accounts can now externally transfer cryptocurrency on chain to third-party eligible wallets.

Is PayPal's (PYPL) new cryptocurrency feature for business accounts available in all U.S. states?

No, at launch, the new cryptocurrency functionality for Business Accounts will not be available in New York State.

What recent developments has PayPal (PYPL) made in cryptocurrency services?

PayPal has launched a U.S. dollar-denominated stablecoin (PYUSD), enabled PYUSD as a fee-free funding instrument for Xoom transfers, and made PYUSD available on the Solana blockchain.

When did PayPal (PYPL) first introduce cryptocurrency capabilities for consumers?

PayPal introduced the ability for customers to buy, hold, and sell cryptocurrency directly from their PayPal and Venmo accounts in 2020.