Started service with PayPal, Bitcoin and other cryptocurrencies. We have compiled important things to know about PayPal’s cryptocurrency activities for you.
PayPal detonated the bomb after years when the world giant PayPal was defined as a “dream” to support only Bitcoin. In the statement made last month, it was announced that for the first stage, crypto money transactions will be possible via PayPal within the borders of the USA. And not only for Bitcoin; It was announced that trading activities will also be possible for Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC).
1.No transaction fees until the end of 2020
In the first place to encourage PayPal cryptocurrency transactions, unlike other platforms, it does not charge any transaction fees. However, users will begin to pay transaction fees by 2021. While there is no fee for keeping crypto money in the account for users, the trading fees planned to be applied in 2021 are as follows.
- 1 – 25 $: 0.50 $
- 25 – 100 $: 2.30% of the purchase or sale amount
- 100 – 200 $: 2% of the purchase or sale amount
- 200 – 1000 $: 1.80% of the purchase or sale amount
- 1000 $ +: 1.50% of the purchase or sale amount.
2. Weekly cryptocurrency purchase limit is 15 thousand dollars
PayPal CEO Dan Schulman increased the cryptocurrency purchase limit from $ 10,000 to $ 15,000 per week, in line with the demands from users. Schulman also said that PayPal is taking firm steps towards becoming “the world’s most interesting and largest digital wallet”, taking into account user demands.
3. By the end of this year the target is all America
With only 10% of US citizens currently using PayPal’s cryptocurrency transactions, cryptocurrency transactions are planned to be possible for 28 million PayPal users before the end of the year. PayPal has approximately 300 million active users worldwide. Now, with the expansion of digital money transactions limited to the USA and their delivery to these people, new breaths may come to the world of crypto money.
4. Behind the CDBCs
PayPal executives emphasize that they are aware of the importance of digital central bank money (CDBC), which many countries have announced one after another. PayPal underlined that the necessary moves can be made to ensure both acceptance and ease of use of these national crypto coins.
5.In 2021, international transactions will be possible
PayPal announced that Venmo, which currently provides a peer-to-peer payment service for customers, will be developed. Users will also be able to execute cryptocurrency transactions using the Venmo application connected to PayPal. While the application is currently serving only within the US borders, it is expected to become active all over the world by 2021.
6. What can you not do with cryptocurrencies with PayPal?
While the PayPal move served as a turning point for both BTC and the entire cryptocurrency industry, it did not satisfy some users on a macro basis. In addition to talking about what you can do with cryptocurrencies on PayPal, people made statements as “what we cannot do is also important.” Currently, you can buy and sell cryptocurrencies determined through PayPal only as an investment tool; you do not send them to anyone else. You cannot directly cash the digital assets you have accumulated, you have to sell them for cash.
7.They took cryptocurrencies to keep up with innovations
PayPal CEO Dan Schulman cited the shortcomings of the current financial system in his statements, saying that the old system is no longer functional for many ordinary investors. Saying that they have taken an innovative step towards the use of crypto currencies in line with the demands from users, the manager said that the goal is to reach 1 billion users who make transactions at PayPal every day. In line with this goal, the importance of including different payment methods within PayPal and adapting them to daily life was emphasized.