News from a payment provider PayPal was a pleasant surprise to many people. As one of the largest companies in the world, PayPal plans to include cryptocurrencies in its offer from 2021. This could mean a new and serious step for the market and could attract investors. The news alone had a direct impact on the price of Bitcoin, which then increased by several percent.
Now PayPal has published more information on the upcoming service. Users will be able to use new products at the very beginning of 2021. This may also include the use of a central bank digital currency (CBDC).
So far, buying Bitcoin with PayPal has been rather a popular process, which has now become even easier.
PayPal: The Company at a Glance
PayPal is one of the world’s largest platforms for making payments digitally. Customers can link their bank account to the app and thus pay easily on the Internet. Due to its high market share, many companies see PayPal as the best way for accepting payments from customers.
Two of the PayPal co-founders are particularly well known. The company was founded with the merger of Confinity and X.com. Confinity is a project with a focus on payment processes and cryptography, which was co-founded by Peter Thiel, among others. Today he is one of the most successful investors and promoters of startups. X.com was founded by Elon Musk. Today he heads the SpaceX company and is considered one of the greatest visionaries of the 21st century.
In 2002 the company was sold to eBay, which had fully integrated the service on its platform. The protection of buyers is one of PayPal’s most important services. This feature allows customers to get back the full purchase price in the event of a complaint.
PayPal Will Offer Digital Currencies in 2021
In autumn 2020, PayPal announced that they would also like to include digital currencies in the offer. This should take place in the form of a wallet, which is integrated into the website. Due to this, customers can trade and store the cryptocurrencies. These should also work for payment.
Accordingly, the company would like to take a new step in developing on the market. While other companies, such as Netcents, offer payment with cryptocurrencies for institutions, PayPal makes this possible for private users from now on. This allows users to shop on the Internet and then pay with bitcoins.
PayPal also serves as a direct point of contact to buy bitcoins. So far, this has been a cumbersome process for many investors. This fact has forced many people to give up their investment. PayPal may even act as a direct competitor of most crypto exchanges.
The potential of cryptocurrencies has steadily strengthened in recent years. Many companies have already integrated blockchain technology into their activities. This also enables new business areas to be opened up, for example by using digital identities. By announcing the new service, PayPal is taking this serious step and thereby contributing to the future of cryptocurrencies.