Payments giant, PayPal, says it’s receiving high support for its Crypto service more than it anticipated in its Q3 2020 Earnings Conference Call on Youtube.
What you should know: A few weeks ago, Nairametrics disclosed PayPal’s plan to provide its users the opportunity to buy, hold, and sell cryptos directly from their PayPal account by early next year.
It hinted at a strategy to significantly boost its crypto’s utility capability by making it readily available as a funding source for purchases by its 26 million clients globally.
What they are saying: PayPal CEO, Dan Schulman, disclosed its clients are signing up to be the first to use the company’s crypto services at an alarming rate. PayPal has started to permit 10% of its customer base to buy, sell, and hold Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
Schulman said, “We’re going to take up our $10,000 limit per day to $15,000 per day, based on the demand that we’re seeing and we’ll roll out to 100% in the U.S. in the next two to three weeks. We’re beginning to already see some halo effects that go on with that.
“But what I’m really excited about is what we’re going to introduce next year, which is, I think, going to dramatically increase the utility of cryptocurrencies, by enabling somebody who holds a cryptocurrency in a PayPal account to instantaneously transfer that crypto into fiat currency at a step rate. So, volatility is taken out of the equation, with no incremental fees charged for them to do that transaction from crypto into fiat
“Then immediately settle in fiat with all $28 million of our merchants at our current take rates and so you have no additional integration needed at any of our merchants. This is just an elegant way of using cryptocurrencies as a funding mechanism.”
Schulman gave key insights on why the global payment company was going crypto.
“The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access, efficiency, speed, and the resilience of the payments system and the ability for governments to disburse funds to citizens quickly,” he added.