With the novelty, digital currencies may be used for purchases on websites around the world, a move that can significantly increase the use of assets in commerce.
Customers who own bitcoin, ether, bitcoin cash e litecoin in PayPal digital wallets will be able to convert their assets into fiat currencies at the checkout to shop, the company said.
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The service will be available to all of its 29 million merchants in the coming months, the company said.
“This is the first time that you can use cryptocurrencies perfectly in the same way as a credit or debit card within PayPal’s wallet”, President and CEO Dan Schulman told Reuters before a formal announcement.
O “Checkout with Crypto” is based on the ability of PayPal users to buy, sell and maintain cryptocurrencies, which the San Jose, Calif.-based payments company launched in October.
The offer made PayPal one of the biggest traditional financial companies to open its network for cryptocurrencies and helped boost the prices of virtual currencies.
O valor do bitcoin almost doubled since the beginning of this year, driven by the increased interest of large financial companies that are betting on greater adoption and see it as a protection against inflation.
PayPal’s launch comes less than a week after Tesla said it would start accepting bitcoin payments for its cars.
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Unlike the PayPal transactions where traders will receive fiat money, Tesla said it will keep the bitcoin used as payment.
Although the asset is gaining momentum among major investors, it has not yet become a widespread form of payment, due in part to its volatility to be continued.
PayPal expects its service to change so that, when settling the transaction in fiat currency, merchants do not assume the volatility risk.
“We think it’s a transition point where cryptocurrencies are no longer predominantly an asset class that you buy, hold and or sell to become a legitimate source of financing to make transactions in the real world for millions of merchants”, this Schulman.
The company will not charge any transaction fees for cryptocurrency payment and only one type of currency can be used for each purchase, he said.
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