Payments giant PayPal is making a big push into the world of cryptocurrency, expanding its services to US business account holders. Starting now, businesses can buy, sell, and hold cryptocurrency directly through their PayPal accounts, a move designed to make the world of digital assets more accessible for merchants.
The news came in a press release on Tuesday, outlining the new features for US business accounts. Merchants can now send and receive supported cryptocurrency tokens to and from external blockchain addresses, directly from their business accounts. While this is exciting news for most US businesses, New York State merchants will have to wait a bit longer as the service will not be available in the state at launch.
This move is just another step in PayPal’s strategy to embrace cryptocurrency. They are clearly aiming to make cryptocurrency a more everyday part of business, building on the success of their own stablecoin, PayPal USD. Launched last August, PayPal USD (PYUSD) is a dollar-backed stablecoin designed to make cryptocurrency transactions more user-friendly. It is currently the sixth-largest stablecoin globally, with a market capitalization exceeding $700 million.
This latest move follows a growing trend of increased interest in cryptocurrency among businesses. The move also reflects PayPal’s commitment to offering more services to its customers, echoing the company’s goal to cater to the growing demands of business owners. The company believes that by making crypto more readily available to merchants, they can play a crucial role in accelerating the adoption of digital currencies.
As a result of this news, shares of PayPal experienced some fluctuation in trading. While they closed down 1.25% at $77.36 during the regular session on Wednesday, they were up 0.08% in after-hours trading. This suggests investors are keeping a close eye on PayPal’s moves in the cryptocurrency space, and how it might impact the company’s future performance.
The move comes at a time of increased interest in the cryptocurrency sector. Earlier this week, Cathie Wood’s investment management firm Ark Invest bought $4.5 million worth of PayPal shares, demonstrating its confidence in the company’s future potential. However, not all analysts share the same optimism.
Regardless of the mixed opinions, one thing is clear: PayPal is making a significant move to become a major player in the rapidly evolving cryptocurrency landscape. Only time will tell how this bold initiative will impact the company’s future success and the broader adoption of cryptocurrencies within the business world.
