PayPal has added a new feature that enables business accounts in the US. to purchase, store and sell digital currencies. This comes after PayPal had earlier released similar services to consumers in the year 2020. Users in New York State will not be able to access the service at launch. This is because of the regulations that limit access to the market.
This feature has been developed to address raising demands from the business owners. Some have called for the same cryptocurrency capabilities available to consumers. Earlier, such services were available only to individual consumers through PayPal and Venmo.
The Senior Vice President of Blockchain, Cryptocurrency and Digital Currencies at PayPal, Jose Fernandez da Ponte, noted the increasing demand from business owners for these services. He said the merchants have asked for similar cryptocurrency functionality as the ordinary users. He expressed excitement to embrace this need and help businesses to facilitate the use of digital currencies without a hassle.
Another feature that will be enabled by PayPal is allowing merchants to send cryptocurrency to other third-party eligible wallets. This new function increases the wider versatility of companies regarding their digital resources. Business account holders can now execute external transfers, enabling the use of blockchain-based transactions.
PayPal Launches PYUSD on Solana For Fast and Low-Cost PaymentsPayPal has ventured into cryptocurrency since the year 2020. It offered consumers the ability to purchase, trade and store cryptocurrency from the platform. Since then, PayPal has attempted to expand the application of digital currencies. During the year 2023, the company introduced a stable coin named PayPal USD or PYUSD which has its value pegged on the US dollar. PYUSD was designed to hold its value, avoiding the volatility characteristic of other similar cryptocurrencies.
PYUSD is fully backed by U.S. dollars and U.S. Treasury securities at PayPal Holdings, Inc. The stablecoin is created and operated by Paxos Trust Company. Paxos has the licenses required in the carrying out of virtual currency business activities, offering both confidence and safety.
In addition, PayPal has also integrated PYUSD with other platforms. In April 2024, PayPal enabled PYUSD to be used on its Xoom platform. This allows customers to send money abroad without transaction fees. More recently, PayPal expanded PYUSD to the Solana blockchain, offering users more flexibility.
