Since the launch of Paypal Crypto in March 2021, Paypal has been increasingly bullish about creating more choices for Paypal customers who wish to buy with crypto, purchase crypto, and now trade crypto and be able to transfer their crypto to third-party wallets. Enabling crypto trading and third-party transfers will be part of Paypal’s next roll out of new cryptocurrency services via a new “super app” wallet, it says. PayPal is obviously making gains from its crypto adoption.
According to Paypal CEO Dan Schulman? “[w]e continue to be really pleased with the momentum we’re seeing on crypto and we’re obviously adding incremental functionality into that.” Leveraging that momentum, “we’re really looking at how do we integrate that into both the trading and the buy with crypto on our platform.”
Beyond PayPal platform, the PayPal-owned peer-to-peer 1 payment app Venmo. “We’re also seeing strong adoption and trading of crypto on Venmo,” says Schulman. With up to 70 million users, Venmo users have been training cryptocurrencies on Venmo after PayPal enabled this on the Venmo app.
Still demonstrating Paypal’s increasing confidence in cryptocurrency adoption on its platform, PayPal increased the weekly crypto purchase limit on its platform to $100,000. Its annual limit was completely removed. Before raising its weekly limit in July 2021, PayPal maintained a $20,000 weekly limit.
Paypal customers are able to buy crypto with as little as $1. It currently supports bitcoin, bitcoin cash, ethereum, and litecoin.
What does this mean for the crypto asset buyer?
PayPal’s new bunch of crypto services will create more choices for its millions of customers, consequently driving more crypto adoption amongst its millions of users globally. While PayPal’s business decision is no doubt a result of the increasing interest it has seen in crypto on its platform, PayPal’s decision to enable crypto trading and third-party wallet transfers through its “super app” is expected to push more crypto adoption by users who want more flexibility. Though third-party wallet transfers will relatively create higher security risks for PayPal customers who use crypto on the platform, the crypto asset buyer gets to enjoy the option of moving his or her crypto assets to the crypto wallets of his or her choice. And speaking of choices, this may spur two things. First, PayPal may eventually support more cryptocurrencies other than bitcoin, bitcoin cash, ethereum, and litecoin. And second, more ecommerce platforms may similarly integrate cryptocurrency services. After all, the freedom to choose is what crypto is essentially about.
Peer to Peer (P2P) Network
- A peer-to-peer (P2P) network is made up of a network of devices that together store and share files and data between them. Each peer is known as a node and they all have the same power to conduct the same tasks. In terms of crypto trading, peer-to-peer often means the transfer or exchange of assets by way of a network of users. Using a platform of this kind, users can make trades or conduct transactions without needing a middleman such as a bank or a broker to pass the trades. Some exchanges offer peer-to-peer websites where buyers and sellers can be matched to fulfill both sides of a trade. (Coss.io)