Daniel Schulman, company chief executive officer at PayPal, announced a business unit dedicated explicitly to cryptocurrency providers.
Last year, PayPal launched a service enabling its customers to buy, hold and sell cryptocurrency. It marked a significant step into the cryptocurrency space for PayPal. Due to the demand for the service, the company increased the weekly purchase limit from $10,000 to $20,000 in cryptocurrency.
More on the Crypto Business Unit
Through an earnings call on February 3, 2021, PayPal’s CEO said that the present monetary system is outdated and PayPal might be investing extra funds into blockchain and digital currencies.
He stated that it is widely known that the current financial system is antiquated and the company envisions a future where transactions are complete in seconds, not days. It is a future where transactions should be less expensive to complete; and one that enables all people to be part of the digital economy, not just the affluent. The company is significantly investing in its new crypto, blockchain, and digital currencies business unit to help shape this more inclusive future.
The new business unit will launch before this quarter ends. Schulman added that PayPal customers would be capable of using crypto to pay for their items and providers by the platform’s almost 30 million retailers.
Schulman stated their goal to launch the first international market in the next couple of months and is also expecting to integrate crypto with Venmo later this year. He also stated that everyone who signed up for crypto opens up their app two times as much as they previously did.
Paypal and Digital Currency
As well as providing this essential cryptocurrency service, PayPal is exploring the potential of digital currency through partnerships with licensed and regulated cryptocurrency platforms and central banks worldwide. Over the past five years, PayPal has placed its focus and resources on researching next-generation digital financial service infrastructure and enhancing digital commerce through an in-house research team focused on blockchain.
In 2019, PayPal Ventures, the company’s venture capital unit, invested in TRM Labs, a company focused on helping financial institutions prevent cryptocurrency fraud and financial crime, and Cambridge Blockchain, a blockchain-based identity, and compliance management company.
PayPal will continue to explore the potential of distributed ledger technology to improve financial services and ensure they are faster, safer, and cheaper. The company intends to work closely with regulators, governments, and central banks in this quest.
Meanwhile, PayPal has just released the full fourth quarter 2020 results. Despite the COVID-19 pandemic, PayPal announced that 2020 was the highest performing on the platform in its previous history, totaling $ 936 billion, a 31% increase from 2019.