PayPal will announce later Tuesday that it has begun allowing American consumers to use their cryptocurrency seizures to pay millions of its online merchants worldwide, an act that could significantly boost the use of digital assets in day-to-day transactions.
Customers with bitcoin, ether, bitcoin and litecoin money in PayPal’s digital wallets will now be able to convert their capture into fiat currency when looking to purchase, the company said.
The service, PayPal announced at the end of last year, will be available to all its 29 million merchants in the coming months, the company said.
“This is the first time you can freely use cryptocurrencies in the same way as a credit card or credit card inside your PayPal wallet,” President and CEO Dan Schulman told Reuters ahead of the official announcement.
Crypto’s exit builds on the ability of PayPal users to buy, sell and hold cryptocurrencies, founded by a payment company based in San Jose, California in October.
The offer was made by PayPal as one of the largest financial companies to open its network in cryptocurrencies and helped drive the rally with tangible cash prices.
Bitcoin has almost doubled in value since the beginning of this year, boosted by rising interest rates from major financial firms that wage huge acceptance and see it as a hedge against inflation.
The launch of PayPal comes less than a week after Tesla said it would begin accepting bitcoin payments for its vehicles. In contrast to PayPal transactions where merchants will be receiving fiat money, Tesla said it will hold used bitcoin as payment.
However, while the emerging assets are gaining traction among large investors, it should still be a widespread payment method, due to the persistence of its volatility.
PayPal hopes that its service can change that, such as by paying a fiat transaction, merchants will not risk being unstable.
“We think it’s a short period of time that cryptocurrencies have gone from being a segment of commodities that you buy, hold or sell to now become a legitimate source of financial support for merchants in the real world for millions of traders,” Schulman said.
The company will not charge you a purchase fee via crypto and only one type of currency can be used for each purchase, it said.