It has been a rapid start to cryptocurrency offering from popular payments portal PayPal. The fintech giant has only just started along its cryptocurrency offering journey and is already looking to ramp things up.
News broke on October 21st of PayPal’s moves to the space, and now just a few weeks later, all eligible PayPal account holders in the U.S. can now buy, hold and sell cryptocurrency. The firm also increased the amount of crypto that users can purchase in a week.
It is set around 10 percent of the firm’s U.S. customers are eligible for its cryptocurrency services, but, citing steep demand, PayPal has upped its weekly crypto purchase limits from $10,000 to $15,000 and said remaining U.S. customers would get access to crypto in the next two to three weeks.
“Due to initial demand from our customers, we’ve also increased our weekly cryptocurrency purchase limit from $10,000 a week to $20,000 a week,” PayPal spokesman Aaron Gould said.
Making a splash
The reception in general for PayPal offering this service appears to be well supported, according to the company. And, they still have additional plans to continue expanding.
Currently, according to PayPal’s cryptocurrency terms and conditions: “You currently are NOT able to send Crypto Assets to family or friends, use Crypto Assets to pay for goods or services, or withdraw Crypto Assets from your Cryptocurrencies Hub to an external cryptocurrency wallet.”
However, plans to bring crypto services to Venmo and international customers in the first half of 2021 remain unchanged, Gould said. The service comes by way of a partnership with Paxos, a registered fintech firm based in New York that will handle all crypto custody on PayPal’s behalf.
While Bitcoin demand has always been relatively high, and well supported by the myriad of cryptocurrency exchanges and the like, the entry of PayPal, as well as other more traditional services into Bitcoin is driving interest more.
“This is huge. Square is selling double the Bitcoin that is made…and now Paypal is doing the same. Paypal is almost 3X Square. We already know Grayscale is consuming a similar magnitude. This is a Bitcoin supply crisis. Base case: expect huge price moves from #Bitcoin, tweeted Charles Edwards Founder of Capriole Investments.