In the world of traditional online payment, Paypal is the king with a 55.61% market share. The entire crypto community has been eagerly looking up to the payments giant to embrace cryptocurrencies, and recent reports state that PayPal is set to introduce crypto to its 325 million users with Paxos Crypto Brokerage.
The information was given out to crypto media outlet Coindesk, by two sources familiar to the matter, and the companies are already said to have partnered.
Paxos Crypto Brokerage is an API-based brokerage service that allows crypto businesses to integrate crypto buying, selling, holding and sending capabilities into their own platforms.
The fintech firms handle the front end services, while Paxos Crypto Brokerage handles all regulatory and technological challenges
Last week, the new service was launched, with European fintech giant Revolut as its first client. The collaboration enabled Revolut to enter the U.S market with its crypto trading services that also expands to stock trading and checking account services in Europe.
Rumours of Paypal’s plans to enter crypto was made public last month via a Coindesk article. But, the payments giant didn’t confirm the report.
“They are going to have some sort of a built-in wallet functionality so you can store it there,” one of three unnamed sources told Coindesk back then, adding that he expects the company “would be working with multiple exchanges to source liquidity.”
However, in a letter to the European commission sent in March, the company noted that it was working on crypto capabilities in favour of building an EU-level framework for crypto-assets.
A boost for the industry
PayPal’s integration with Paxos’s brokerage platform would be one of the biggest cases of crypto adoption. The payments giant will also be one of the largest mainstream companies to offer cryptocurrency services, joining other publicly-traded payments provider Square and unicorn stock brokerage Robinhood.
The sources told Coindesk that an official announcement from of this new collaboration could come as early as this week. As of now, it isn’t clear what cryptocurrencies PayPal plans on offering.
Charles Cascarilla, CEO of Paxos, had recently remarked that the new service could be a “major tipping point for the adoption of cryptocurrency” as customers are able to “access crypto through the brands and applications they trust.”
PayPal joining crypto could be a major boost for the market especially because people trust the payment processor as it had once revolutionized the way we interact with money.
It was expected that PayPal would be backing Libra, but the company decided to back-off because of regulatory complications. But deploying their crypto solution via Paxos would be a better alternative as the company would be able to utilize its own payment rails at some point.