Recently, PayPal announced that it will offer crypto services to its US users. Now, the latest reports indicate that the payments firm is aiming to launch these services for its platform throughout the world. It will introduce the services along with the Venmo app and the company will also dive into the central bank digital currencies (CBDCs) arena.
Senior PayPal executives have said that more details about the company’s plans to aggressively push into the cryptocurrency industry in 2021. They were speaking during the company’s Q3 2020 earnings call. They also see CBDCs as a lucrative investment opportunity as more governments and central banks look to introduce the digital versions of their national currencies.
Dan Shulman, PayPal CEO, acknowledged that the world is quickly shifting from physical to digital. He was speaking while emphasizing the accelerated rate of change that currently exists within the payments and financial services industries. Citing PayPal’s discussions with regulators, central banks, and cryptocurrency industry leaders, Shulman commented:
“There is no question that digital currencies are going to be rising in importance, having increasing functionality, and increasing prominence. CBDCs […] are a matter of when and how they’re done, and not if.”
The chief executive said that through its scale and prominence the firm will play a major role in helping shape the utility of CBDCs. PayPal will facilitate interoperability with the current payment rails and increasing acceptance among merchants. Shulman also briefly described the legacy financial system as ‘not working’ for most of the ordinary people.
“I do think that our platform and all the new digital infrastructure that we’re putting in place right now can help make that management and movement of money more efficient, less expensive, and faster.”
Crypto Demand Is Growing
In October, PayPal said that it plans to roll-out services enabling customers to buy, sell, and hold various crypto assets. That announcement sent bullish vibrations across the crypto markets. This roll-out will also see the crypto assets well-supported by PayPal’s merchant network of around 28 million vendors.
In that call, the company’s executives insisted on the strength of demand for crypto services from users around the world. PayPal CEO noted that the company’s base is now eager for them to provide these crypto services.
While only 10% of PayPal’s US-based users currently have some access to its crypto services, Shulman believes that the rest of the country will come online later this month:
“Our waiting list was two to three times what our expectations were. We’re seeing people who have already bought crypto open their wallet several times a day to check out what’s happening with their crypto investments,”
Shulman also announced that PayPal plans to increase its weekly crypto purchase limit from $10,000 to $15,000 in response to the growing demand. The CEO also said that the company’s virtual currency services will be introduced to international customers, alongside the launch of the Venmo mobile payments app, in the first half of 2021.
“Over the course of next year, you’ll see us move into a couple of different areas.”
PayPal joins other reputable institutions that are turning to the crypto space as their new investment frontier.