Now accessible through PayPal’s application are Ethereum, Bitcoin, Bitcoin Cash, and Litecoin. According to the official website, these funds remain protected without requiring a digital key. For the mobile version, internal transfers are supported, and no MetaMask account is needed.
The company’s site offers educational content on cryptocurrencies, volatility, and tax regulations, helping new crypto holders gain better understanding and ensure safety. The app’s familiar interface can also aid beginners in navigating the cryptocurrency world more easily.
Note that users can start with a USD 1 balance using the mobile application. However, network fees are applied when transferring cryptocurrencies between PayPal accounts. This service was introduced two years ago in October 2020. In June 2022, they added a feature allowing transfers to external wallets and exchanges for select U.S. users.
PayPal’s Recent Developments
In late July, the White House announced the creation of an Economic Opportunity Coalition (EOC) aimed at reducing economic disparities and boosting opportunity in underserved communities. PayPal is one of the founding members alongside 21 other corporations and three foundations committed to this initiative.
Despite these advancements, PayPal faces challenges on different continents. In Indonesia, for instance, it has been banned due to non-compliance with licensing regulations. The government imposed a temporary block after urging major tech companies, including PayPal, to register under new rules by August 2022 or face penalties.
Competing in the Cryptocurrency Market
In its efforts to enter the cryptocurrency market, PayPal competes with established players. Meanwhile, other crypto platforms like Binance have encountered issues. Following regulatory requirements for KYC (Know Your Customer) to combat money laundering and terrorism financing, Binance has seen a significant drop in users—nearly 90%.
This situation occurred even after implementing measures that align with international regulations concerning cryptocurrencies and funding activities. In July 2021, Binance limited the withdrawal amount of Bitcoin for non-KYC verified users from 2 BTC to 0.06 BTC, a move that resulted in substantial revenue loss according to one company executive.