PayPal introduced payment in cryptocurrencies at retail outlets

The American payment system PayPal has made cryptocurrency payments available in retail outlets since March 30. The company talked about such an opportunity back in 2020, when US customers were able to perform transactions with digital assets through the service. Users will be able to transfer Ethereum, Bitcoin, Litecoin to fiat money at 29 million merchants that are partners of PayPal. CEO Dan Shulman says this is the first time users of the system can use cryptocurrency as a credit or debit card.

Where it leads

Analysts consider the innovation in the PayPal system as the next step towards the adoption of digital currencies as a means of payment. Experts are confident that ApplePay and GooglePay may soon make such a decision. This speculation is underpinned by Apple’s leadership in cryptocurrency and the brand’s integration with BitPay. In addition, the news affected the bitcoin rate, almost instantly raising it to the level of $ 59.3 thousand and bringing it closer to the historical maximum of $ 61.8 thousand. The chart below shows the changes in the Bitcoin price associated with the introduction of updates in the PayPal system.

Bitcoin exchange rate chart on March 29-31, 2021

A week earlier, Tesla announced the possibility of buying cars with cryptocurrency. However, this payment option can only be used by US customers so far, while PayPal’s innovation allows digital money to be used in retail outlets around the world. The ability to purchase a Tesla car using cryptocurrency will become available to buyers from other countries during 2021. At the same time, the company does not plan to transfer digital money to fiat money.

Let us also recall the Visa payment system, which was the first of the major services to make cryptocurrency transactions available. The company transferred USDC stablecoins using the Ethereum blockchain. Until that moment, only fiat money transactions were available in the payment system.

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