PayPal Opens Corporate Contracts In Cryptocurrency
PayPal has started to allow companies to deal, in complete freedom, in cryptocurrencies, responding to a concrete need that had not yet been heard.
PayPal's sympathy for cryptocurrencies is nothing new. Already since 2020, retail customers of one of the world's fastest payment systems have been able to manage their own digital wallet, alongside the fiat currency accounts they associate with their personal PayPal account. As of last 25 September, however, a further step was taken. Since a couple of days, in fact, all Business accounts have the possibility to buy, sell and exchange crypto directly from the PayPal account.
This is a major opening. PayPal is a widely used and popular payment system around the world. The fact that it allows for cryptocurrency-based transactions and trading is a considerable vote of confidence in this industry.
The new functionality is already available to all US merchants, with the exception of New York merchants, and will gradually become available to business account holders who are not in retail or large retail. PayPal's Senior Vice President of Blockchain, Crypto and Digital Currencies, Jose Fernandez da Ponte, commented enthusiastically on his company's decision, noting the benefits:
"Business owners have long expressed their desire to have the same cryptocurrency-related functionality that private consumers can already make use of. We are thrilled to be able to provide them with this possibility, thanks to a new offering that allows them to do even more and use digital currencies effortlessly."
PayPal's Dedication to Decentralised Finance is Growing
PayPal has been active in DeFi for a long time. As early as a year ago, in August 2023, it launched its own stablecoin pegged to the US dollar and called PYUSD (short for PayPal - United States Dollar). This currency is not issued directly by the company, but by its partner Paxos, and is fully backed by US dollar deposits, or short-term cash equivalents. PYUSD is fully redeemable, at any time, according to a 1:1 exchange rate with the US dollar.
At the beginning of this year, PYUSD was extended to Solana, and can therefore also be redeemed in SOL, a network characterised by significantly lower transaction costs, which could spur the use of stablecoin for smaller expenses, from a quick lunch to breakfast at the bar. This would be a great way to support the expansion of PYUSD and, consequently, the growth of PayPal. The company, in fact, has an interest in its currency circulating as much as possible.
In fact, PayPal is expanding its operations on the blockchain in order to remain among the leaders of the digital networked payments industry in the future.
The Capitalisation of Pyusd could Relaunch Paypal
The market capitalisation of PYUSD has surpassed $1 billion, establishing it as one of the most solid and reliable stable in the market. Of course, we are still a long way from the value of Tether and Circle, the two systems that rule in this segment. Nonetheless, PayPal is a solid and robust entity that could find a way to dominate the Web3 scene, thanks to its stable and increasingly pervasive cryptocurrency operations.
The second-largest cryptocurrency by market capitalisation has been falling relative to Bitcoin's price for more than two years.
Why has Ethereum been weaker than its competitors?
The price of the main cryptocurrency has been rising almost without significant correction since Donald Trump's victory in the US presidential election.
PayPal's sympathy for cryptocurrencies is nothing new. Already since 2020, retail customers of one of the world's fastest payment systems have been able to manage their own digital wallet, alongside the fiat currency accounts they associate with their personal PayPal account. As of last 25 September, however, a further step was taken. Since a couple of days, in fact, all Business accounts have the possibility to buy, sell and exchange crypto directly from the PayPal account.
The Opening departs from the United States
This is a major opening. PayPal is a widely used and popular payment system around the world. The fact that it allows for cryptocurrency-based transactions and trading is a considerable vote of confidence in this industry.
The new functionality is already available to all US merchants, with the exception of New York merchants, and will gradually become available to business account holders who are not in retail or large retail. PayPal's Senior Vice President of Blockchain, Crypto and Digital Currencies, Jose Fernandez da Ponte, commented enthusiastically on his company's decision, noting the benefits:
PayPal's Dedication to Decentralised Finance is Growing
PayPal has been active in DeFi for a long time. As early as a year ago, in August 2023, it launched its own stablecoin pegged to the US dollar and called PYUSD (short for PayPal - United States Dollar). This currency is not issued directly by the company, but by its partner Paxos, and is fully backed by US dollar deposits, or short-term cash equivalents. PYUSD is fully redeemable, at any time, according to a 1:1 exchange rate with the US dollar.
At the beginning of this year, PYUSD was extended to Solana, and can therefore also be redeemed in SOL, a network characterised by significantly lower transaction costs, which could spur the use of stablecoin for smaller expenses, from a quick lunch to breakfast at the bar. This would be a great way to support the expansion of PYUSD and, consequently, the growth of PayPal. The company, in fact, has an interest in its currency circulating as much as possible.
In fact, PayPal is expanding its operations on the blockchain in order to remain among the leaders of the digital networked payments industry in the future.
The Capitalisation of Pyusd could Relaunch Paypal
The market capitalisation of PYUSD has surpassed $1 billion, establishing it as one of the most solid and reliable stable in the market. Of course, we are still a long way from the value of Tether and Circle, the two systems that rule in this segment. Nonetheless, PayPal is a solid and robust entity that could find a way to dominate the Web3 scene, thanks to its stable and increasingly pervasive cryptocurrency operations.
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