News of PayPal entering the cryptocurrency market triggered a rally in the markets, with Bitcoin surpassing the $13,000 benchmark for the first time since July
PayPal confirmed yesterday that it is entering the cryptocurrency market. The global payment service provider stated that it would allow customers to buy, hold and sell select cryptocurrencies. Initially, PayPal would only support Bitcoin, Ethereum, Bitcoin Cash and Litecoin. These cryptocurrencies can be purchased, sold or saved directly within the PayPal digital wallet.
The cryptocurrency service would initially be available to customers in the United States over the coming weeks. PayPal will be working on expanding the services to Venmo and other international markets in the first half of the next year. The cryptocurrency service via PayPal is made available thanks to its partnership with Paxos Trust Company, a regulated crypto services and products provider.
PayPal revealed that the increasing need for digital payments was the key reason behind its entrance into the market. The company intends to make it easy for people to use cryptocurrencies to pay for goods and services in various parts of the world. “PayPal Holdings, Inc. (NASDAQ: PYPL) today announced the launch of a new service enabling its customers to buy, hold and sell cryptocurrency directly from their PayPal account, and signalled its plans to significantly increase cryptocurrency’s utility by making it available as a funding source for purchases at its 26 million merchants worldwide”, the blog post added.
PayPal added that customers would easily be able to convert their selected cryptocurrency balance to fiat currency. They would enjoy the certainty of value and no incremental fees. The PayPal merchants will not be burdened with additional integrations or fees since all transactions will be settled with fiat currency at their current PayPal rates.
Bitcoin rallies past $13k
The announcement by PayPal propelled Bitcoin to surpass the $13k level for the first time since July and only the third time since the bull run of late 2017. Bitcoin has been trading in the five – figure region for the past twelve weeks, and the move above $13,000 solidifies its position in this region.
Following the PayPal announcement, Bitcoin went up by 10%, while Ethereum, Litecoin and Bitcoin Cash were also up by 8%, 15% and 9%, respectively. The Bitcoin price has lost its momentum and is now trading around the $12,700 region.
Although the rally didn’t last, some experts believe that PayPal’s entry into the market is a bullish sign as millions of new users will enter the crypto space through the company.