PayPal Launches Crypto Services for US Business Accounts

PayPal announced support for cryptocurrency for US business account holders. The fintech giant says the new services enable merchants to buy, hold, and sell digital assets directly through their PayPal business accounts.

However, this new functionality will not be available
to businesses in New York at launch. PayPal’s decision to open cryptocurrency
tools to businesses is reportedly a response to rising demand.

Onchain Crypto Transfers

Additionally, the new service allows US business
account holders to transfer crypto on-chain to third-party wallets. According to the firm, this
functionality will let merchants send and receive cryptocurrency to and from
external blockchain addresses, enhancing the ability to manage digital assets.

The rollout reflects PayPal’s broader goal to
integrate cryptocurrency into mainstream business operations. The
company has been pushing for this trend since 2020 when it first allowed consumers to
manage crypto within PayPal and Venmo.

Over the last few years, PayPal has expanded its
offerings. In 2023 it launched its own stablecoin, PayPal USD (PYUSD), backed by US dollar reserves. It is used as a funding
instrument across PayPal’s ecosystem, including for international transfers on
Xoom, a PayPal-owned platform. Most recently, PYUSD was enabled on the Solana
blockchain to give users flexibility by supporting multiple blockchain
networks.

Last month, Crypto.com collaborated with PayPal to
enable users to access cryptocurrency purchases. The offering makes it possible to
transfer funds from PayPal to Crypto.com and purchase available crypto tokens
by linking the wallets of the two platforms. The entities mentioned that this
feature will soon expand to other markets outside the US.

PayPal Targets New Crypto Partnerships

Additionally, MoonPay partnered with PayPal to
launch a crypto purchasing option for cryptocurrency app users in the US. This
service allows users to access PayPal for transactions through wallet
transfers, bank transfers, and debit cards. It aims to enhance the buying and
trading of cryptocurrencies by linking traditional financial services and the
crypto space.

According to the announcement, the collaboration
between MoonPay and PayPal marks a significant milestone in the journey
towards mainstream adoption of cryptocurrencies. Users have access to a wider
range of digital assets as PayPal extends its offering of crypto tokens through
MoonPay. Elsewhere, PayPal obtained FCA’s approval to offer
digital asset services in the United Kingdom.

This article was written by Jared Kirui at www.financemagnates.com.