PayPal Expands Cryptocurrency Services for US Merchants

PayPal Steps Up Crypto Game, Allows US Merchants To Buy, Sell, And Hold Digital Assets - PayPal Holdings (NASDAQ:PYPL)

Payments giant PayPal Holdings Inc. PYPL unveiled its plan to extend cryptocurrency services to U.S. business account holders, with the exception of New York State. What Happened: As per a press release issued on Tuesday, the latest move would enable U.S. merchants to buy, sell, and hold cryptocurrency directly from their business accounts. Furthermore, business account holders would be able to send and receive supported cryptocurrency tokens to and from external blockchain addresses. However, New York State will be excluded from this service at the time of launch, the press release read. This initiative is part of PayPal's ongoing strategy to enhance the usefulness of cryptocurrency by making it more readily available to millions of merchants throughout the U.S. See Also: Kamala Harris Strengthens Crypto Stance: The US Will 'Remain Dominant In AI And Quantum Computing, Blockchain, And Other Emerging Technologies' Jose Fernandez da Ponte, Senior Vice President of Paypal's cryptocurrency arm, said the step was taken in response to growing demands by business owners to access the same services already available to consumers. Why It Matters: PayPal's foray into cryptocurrency services is not new. In August last year, the company launched a U.S. dollar-backed stablecoin, PayPal USD PYUSD/USD, aimed at bolstering the adoption of digital tokens for transactions. As of this writing, it was the sixth-largest stablecoin, with a market capitalization exceeding $700 million, according to CoinMarketCap. The company already allows customers to buy, sell, and hold cryptocurrencies in their online wallets. Interestingly, earlier this week, Cathie Wood's investment management firm Ark Invest purchased $4.5 million worth of PayPal shares. This investment came amidst diverse analyst opinions about the company. Price Action: Shares of PayPal closed 1.25% lower at $77.36 during Wednesday's regular trading session, although they were up 0.08% in after-hours trading, according to data from Benzinga Pro. Image Courtesy: PayPal Read Next: Anthony Scaramucci Quips 'Kamala Means Bitcoin In Every Language,' But Biden-Harris Administration Is No Laughing Matter For Crypto Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

PayPal to Allow Businesses Buy and Sell Crypto

Samantha Kelly is a freelance writer with a focus on consumer technology, AI, social media, Big Tech, emerging trends and how they impact our everyday lives. Her work has been featured on CNN, NBC, NPR, the BBC, Mashable and more. It's about to get easier for US merchants to use cryptocurrency for payments. PayPal is launching a new service to allow the businesses that use its platform to buy, hold and sell crypto. Although the company already allowed its PayPal and Venmo users with consumer accounts to use bitcoin and other virtual coins via its online wallets, it's now rolling out similar capabilities to businesses. The effort marks a major play in expanding the functionality of digital assets for businesses. It comes as cryptocurrency has gained wider market acceptance after the US SEC approved bitcoin exchange-traded funds in January. "Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers," said Jose Fernandez da Ponte, PayPal's senior VP of blockchain, cryptocurrency and digital currencies in a press release Wednesday. The change will make crypto available to "millions" of merchants across the US, many for the first time. However, the functionality will not be available for businesses in the state of New York, according to the company. PayPal added that it is also allowing businesses to externally transfer cryptocurrency on chain to third-party eligible wallets.