Crypto exchange giant, Coinbase is all set to allow its users in the United States to purchase cryptocurrencies through their Paypal account in what seems to be an ambitious expansion as more and more traditional finance giants embrace the space.
Coinbase announced enabling the country’s users to instantly fund crypto purchases with PayPal in just a few taps. The official press release also revealed that the users do not need to add bank accounts or card numbers directly to Coinbase but continue using the online payments system to manage their data.
Eddie Lo, Product Manager, Coinbase stated,
“Funding crypto purchases through PayPal offers a familiar and trusted experience as you explore the world of crypto. Working with the payments ecosystem, PayPal has built up the knowledge and implemented the proper tools in order to assure transparency, performance, and security in all services.”
In short, debit cards and bank accounts that are linked to PayPal can now be used for the purchase of crypto on the exchange. However, PayPal-linked credit cards as well as e-checks, on the other hand, cannot be used for the same.
Users on the platform can make a purchase of up to $25,000 a day with their PayPal accounts. Moving forward, the Nasdaq-listed crypto exchange will expand the feature to let users buy crypto using funds from PayPal to more countries. Meanwhile, cash withdrawals to PayPal are already supported in the US, Canada, EU, as well as in UK.
Why Is Coinbase’s Move Crucial?
Coinbase happens to be one of the world’s oldest cryptocurrency platforms. From humble beginnings to debuting on Nasdaq on the 14th of April was a major feat for the company. This talks volumes about the mainstream adoption of the crypto sector.
PayPal, on the other hand, dipped its toes into the space only last year when it announced crypto service to US customers. It is important to talk about its global foothold. PayPal is present in over 200 countries and engages in more than 100 currencies. In 2020, the payments company processed well over 15 billion transactions, with a valuation of $936 billion.
The recent move is no less than a bellwether of crypto going mainstream. Talking about the popularity surrounding digital assets, Paypal CEO Dan Schulman had recently commented that demand on the crypto side has been multiple-fold to what they had initially anticipated. He went on to add that there was a lot of excitement in the industry.
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