According to information from three people familiar with the subject, the Fintech giant PayPal plans to sell cryptocurrencies directly to 325 million users.
Crypto Money Sale
Currently, PayPal can be used as an alternative tool to withdraw money from exchanges such as Coinbase. But the move in the form of selling crypto money will be a first.
Sources said, “As far as we understand, they will allow crypto purchases and sales directly from PayPal and Venmo. They will have some kind of built-in wallet functionality so you can save your coins and money there. ”
What Crypto Coins Will Be?
It remains unclear which cryptocurrencies or how many cryptocurrencies will be used for this application. The industry source said they expect PayPal to "work with multiple exchanges for the liquidity source."
A second source confirmed that PayPal wants to trade crypto and emphasized that the service will be implemented "in the next three months, maybe sooner."
PayPal has not made any statement on the subject.
PayPal's Past Activities
It should be noted that PayPal has had a long-standing relationship with Coinbase since 2016. In 2018, Coinbase enabled an instant fiat withdrawal to PayPal for US customers. Last year, European Coinbase users started withdrawing their money to their PayPal accounts.
Meanwhile, crypto-offering fintech apps are making substantial revenue. Launched in mid 2018, Twitter CEO Jack Dorsey made Bitcoin purchases. Cash App reported $ 306 million in bitcoin revenue in its latest earnings report.
London-based Revolut, which started to offer users crypto after the 2017 partnership with Bitstamp, raised 500 million dollars in February and the value of the platform reached $ 5.5 billion.
Crypto is seen as an increasingly obvious way to increase the number of users in fintech applications and create new revenue streams. Indeed, PayPal CEO Dan Schulman announced that his plan this year is to make a good money from Venmo, which has more than 52 million accounts.