PayPal Users Can Transfer Crypto Between External Wallets and Exchanges After new Approval

PayPal Holdings Inc. announced on June 7 that its users can transfer Bitcoin, Ethereum, Bitcoin Cash, and Litecoin to other exchanges and external wallets.

The company release stated that the enhancement was brought about on the back of popular demand ever since the platform offered the four crypto assets in October 2020.

Jose Fernandez da Ponte, senior vice president, and general manager for PayPal’s blockchain, crypto, and digital currencies vertical, said, “This is really about access and utility. We are greatly enhancing the utility of moving crypto around.”

The enhanced utility will allow users to not only transfer supported coins into PayPal and to other external wallets and exchanges, but they will also be able to transfer crypto to family and friends. Fernandez da Ponte also notes, “Customers who transfer their crypto into PayPal can extend the utility of their crypto by spending using our Checkout with Crypto product at millions of merchants.”

Currently, the service is available to select U.S. users and will be rolled out to all eligible U.S. customers in the coming weeks as per the company note.

The development comes as the company has revealed that the New York Department of Financial Services has granted PayPal a BitLicense. A BitLicense allows a company to conduct Virtual Currency Business Activities.

And as per the company, PayPal is the first company to convert a conditional Bitlicense into a full Bitlicense.

PayPal expansions and developments

Back in November 2021, the firm had confirmed in its quarterly results showing that PayPal plans to expand its crypto offerings.

The company had noted its plans to introduce cashback for crypto purchases and the ability for Venmo credit card users to purchase crypto using cashback from card purchasers. Earlier this year, PayPal also unveiled that it might launch its own stablecoin. In the meantime, PayPal kept updating its policies around NFT programs that have seen major customer traction. 

Experts have noted that the new services can add millions of new users while adding to the time spent on the PayPal app by the existing ones.

That said, the lukewarm crypto market is also not deterring PayPal’s long-term plans. As per Fernandez da Ponte, “We think a substantial amount of commerce and payments will happen on digital currencies in the future, and we are playing the long game,”