Financial and payment service provider PayPal announced a new change affecting its crypto purchase feature
PayPal shared a post yesterday on its website announcing that its US customers will now be able to purchase up to $100,000 worth of crypto per week. The announcement also detailed that the initial annual limits would be dropped effectively. PayPal customers in the US have been able to buy, hold, and sell a number of digital assets, including Bitcoin, Ethereum, and Litecoin, while also making payments via the platform.
The California-based firm explained that the new move would see increased flexibility and avail more choices to customers who would seek to purchase crypto on the platform. PayPal continues remodelling its payment platform to suit crypto transactions, which were launched in November last year, with users initially having a $20,000 weekly limit.
There have been concerns over PayPal only offering custodial services for its crypto offerings, making it impossible for users to withdraw their tokens into external wallets. However, earlier in the year, Jose Fernandez da Ponte, PayPal’s vice president and head of blockchain & crypto at the payment solutions firm, confirmed that PayPal was working on enabling withdrawal holdings for its users.
Coupled with the new announcement, PayPal also maintained that it remains committed to continually providing guidance and insights about crypto to its customers and that it welcomes customer input for the desired services.
“To help our customers learn more about crypto, we continue to update our in-app guides and educational materials on cryptocurrency, provide answers to commonly asked questions, offer insights into the world of crypto, and help demystify some misconceptions customers may have about crypto,” the article read.
PayPal offers its crypto services via collaborative action with Paxos Trust Company, with the firm providing custody for PayPal customers’ crypto and also trading the assets on their behalf.
PayPal previously launched a joint venture with Coinbase allowing US-based Coinbase customers with PayPal accounts to purchase crypto via the exchange. PayPal is not the only payment solutions firm that has dived into the crypto space. Visa and Mastercard have also in recent months heightened the collaborations with exchanges as they launch new products for their consumers.
Elsewhere, increased ventures by institutions into the crypto space saw Square Inc. co-founder Jack Dorsey announce via a tweet on Thursday that the company would soon launch a new division specifically focussed on Bitcoin. The new division would seek to facilitate non-custodial and permissionless DeFi services for its users.
The Twitter CEO went along with the open sourcing and development push that he has been a champion of, revealing that the new outfit to be called TBD would aim to create a business platform and that it would integrate Cash App, Tidal, and Seller. Jack Dorsey has been one of the standout Bitcoin proponents, and so has been his 2009-founded company. Early last month, Square revealed plans to develop a hardware Bitcoin wallet to improve Bitcoin custodial services.