Hello everyone, it's Kodiaq again, today with big news! PayPal released the possibility to pay in cryptocurrencies (only US citizens for now). Ok, so how will it work? We will see it together today, by analyzing the video PayPal itself posted.
What's PayPal?
For those who don't know, PayPal is a payment services provider created in the USA in 1999 (PayPal Holding Inc).
Ok, maybe I exaggerated just a bit with the logo. Anyway, this is a service active for almost a decade, and it's the biggest payment provider, followed by Skrill and other similar services.
Why this move from a "conventional" payment provider?
It was announced back in Q1 2020 when the CEO announced that "we will introduce cryptocurrencies exchange and payment in PayPal". And then it goes in, in march 2021. Almost a year from the announcement, PayPal decided to finally release its cryptocurrency payment service to US Citizens. As we know, cryptocurrencies are the future, so we need to expect also traditional banks to integrate cryptocurrencies in their processes. At least, this is what i hope to.
PayPal is the first to offer such a type of service. Visa nor Mastercard yet released something similar, even if announced almost in the same period last year, so we will need to use this and wait for other services.
Skrill is one of the first payment providers who added cryptocurrencies to their app. Unfortunately, yet it's still not possible to pay with them, but an exchange with good fees is available since before 2019, so it's a great alternative!
Complaints after the alpha release of the service
When this service was initially released, some people experienced account blocking without any reason. Unfortunately, this is a common thing when using PayPal, they're a bit shady on the reasons why they block your account.
This is a thing I also personally experienced. For no reason, I got an account blocking. Well, a reason was present actually. I was selling cryptocurrencies. I only anticipated them, and they blocked my account. Seems legit. Well, welcome to PayPal. Be aware, their policy is strict so pay attention when using their services. Even if the accounts can be unblocked and funds can be transferred after 180 days from the initial block, it is still a pity to lose a PayPal account (is the most used payment method on the biggest sites like eBay and Aliexpress).
How will the new cryptocurrency payment system work?
From the video posted by PayPal, it seems that they integrated a cryptocurrency wallet where our digital currencies can be converted into Fiat currency (EUR, USD, GBP, AUD...) and then used to pay. I always not recommend depositing your crypto on a centralized service, as funds can be lost due to hacking, server problems, and similar stuff. So, when this service will be rolled out, I suggest you continue using decentralized wallets for your crypto-assets, in order to avoid any type of problems related to centralized services.
PayPal is one of the safest, besides the best payment service ever created. They are expanding this new service for everyone, and this will also give PayPal a great boost in the stock market, so watch out!
I think we also come to the end of the article. Thanks for reading, and happy Easter! As usual, if you liked the article, leave a tip. What do you think about the decision of PayPal to introduce cryptocurrencies as a payment method? Comment below!
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