PayPal has provided its US users with the opportunity to pay with cryptocurrency in stores connected to this payment system. The service is called Checkout with Crypto and allows you to pay using Bitcoin, Ethereum, Litecoin and Bitcoin Cash. “For the first time, you can pay with cryptocurrencies in the same way you would with a credit or debit card,” Dan Schulman, PayPal president and chief executive officer (CEO), told Reuters.
However, you can only pay with cryptocurrency that is already on your PayPal wallet balance, and you cannot pay from external cryptocurrency wallets. Moreover, the store receives payment after converting the amount into dollars. We'll come back to this later, but first we'll look at PayPal's success story and how it remains competitive against younger fintechs.
PayPal was successful long before fintech became fashionable. The term “fintech” first appeared in one of the official English dictionaries (Merriam-Webster) only in 2022. The active use of this term by the general public began after the financial crisis of 2007–2008, when there was a boom in investment in technology startups in the financial sector. So it's not surprising that PayPal describes itself not as a fintech company, but as an Open Digital Payments Platform or payment ecosystem.
Our advantages
Security during payment transactions. Our partners are reliable services that exchange PayPal EUR
Bitcoin
(BTC)
is not the first year. You can confidently trust them with both small and large amounts without fear of fraud.
Detailed statistics. Select exchangers and view all the necessary information. The description indicates the current exchange rate, the minimum amount for an exchange transaction, the amount of reserved funds, the deadline for executing applications, as well as other conditions.
Reviews about the work of services. Visitors to our website are given the opportunity to view comments from clients who have already exchanged PayPal EUR
to
Bitcoin (BTC)
. You will also be able to leave feedback about the transaction.
The most favorable rate. Our partners offer loyal conditions to users. Thanks to special offers, you can save money - the benefits are especially noticeable when converting large amounts.
Convenient search system. Find services by currency type, name and other parameters. Just a couple of clicks, and the system will leave only relevant offers that best meet the specified conditions.
Built-in calculation calculator. Use a special tool to calculate the commission, the amount of funds required for the transaction and other features. PayPal EUR exchange option
on
Bitcoin (BTC)
among those available in a minute, using a convenient calculator that takes into account all the subtleties.
Clear interface. You will not have any difficulties learning the functionality. Any user, even those who have never used such services before, will quickly understand the convenient navigation.
Ability to exchange PayPal EUR
to
Bitcoin (BTC)
at any time. Some services operate 24 hours a day. Application deadlines can be clarified on the website of the selected exchange office.
Is it possible to buy Bitcoin on PayPal?
The service announced support for cryptocurrencies back in October 2022, after which a sharp rise in Bitcoin and other currencies began. Today, an electronic wallet already allows you to buy Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
The payment system allows you to buy, sell and store cryptocurrency - for this you do not need to create a separate wallet, the money will be stored in an internal account. Buying cryptocurrency is also simple - money will be debited from your account or linked bank card.
PayPal's cryptocurrencies only work in the US for now. The company plans to expand the list of available currencies, add the ability to pay for purchases and launch the service on the international market in the second half of 2022. The Verge reports this. It is unknown whether Russia will be among the new countries, because this year the company disabled internal transfers in our country.
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Exchangers cooperating with us are independent companies. We do not set or regulate currency exchange terms. Check all the details of financial transactions on the selected website - usually there are special instructions for clients or a FAQ section containing answers to the most frequently asked questions from users. If necessary, contact technical support.
Note! We are not responsible for various transactions carried out through other sites! To avoid misunderstandings, carefully study the details before conducting a transaction.
Exchange PayPal to Bitcoin through third-party services
The exchange of funds for bitcoin occurs according to the following scheme: first, money is transferred to Yandex Money, Qiwi, AdvCash and wallets of other systems, and then bitcoins are purchased. This method is absolutely safe, since the user cannot be accused of buying cryptocurrencies.
Step-by-step instructions for exchanging PayPal and Bitcoin through an exchanger
- We go to the BestChange exchanger monitoring service.
- In the left column we select rubles or PayPal dollars, and in the right column - BTC. There are no direct exchangers in this direction, so we click on double exchange. The client will be offered 10-15 options for transferring money from the service to a Bitcoin wallet.
- We check the reserves of exchangers so that there are enough funds to carry out the operation. We go to the first exchange office with a favorable rate and exchange PayPal for the offered currency.
- After receiving funds to the wallet, we go to the second proposed exchanger, where Bitcoins are purchased.
Transferring money to exchangers can be carried out manually or automatically, so one transaction takes from 5 minutes to 24 hours.
Exchange in the opposite direction is possible directly. About a dozen exchangers offer to exchange BTC for PayPal USD, and only 1-2 offer to receive PayPal RUB in return. The operation is carried out according to the same algorithm as when purchasing Bitcoins.
Buying BTC with PayPal on exchanges
Even before the ban was introduced, some exchanges offered the purchase of Bitcoin using PayPal. The transaction could be made through services offering person-to-person (P2P) exchange:
- eToro
- LocalBitcoins
- LocalCryptos
For example, how to buy BTC via PayPal on LocalCryptos:
- Register with LocalCryptos - it only takes thirty seconds. You can start trading immediately after creating a LocalCryptos account.
- Search for sellers. Anyone can place an order to buy or sell Bitcoin using any payment method. Narrow your search to find a retailer that fits your needs. You can further filter offers by currency, location and price.
- Exchange PayPal for Bitcoins . Once you find a seller, enter the amount of Bitcoin you want to buy and lock in the exchange rate. The other party will receive a notification. Most traders receive a response in less than 60 seconds.
- Transfer money via PayPal . First, the seller will deposit the amount of Bitcoin into an escrow account. Escrow holds the BTC in trust to ensure that both parties hold up their end of the deal. Once the Bitcoin is in escrow, the seller will provide you with their transfer details via an encrypted chat. Once the seller confirms receipt of your transfer via PayPal, the Bitcoin is transferred from escrow to your wallet.
After all the bans were lifted, many exchanges added to their functionality the ability to purchase Bitcoin using PayPal.
Bitwala
Bitwala is an interesting service that makes bank transfers on your behalf in exchange for Bitcoin. So you can, for example, pay your bills with Bitcoin. Bitwala is a European company that currently only supports SEPA bank transfers, so you can only send BTC to European bank accounts using this service. However, you can do this from anywhere in the world. The main operating currency of the service is EUR (Euro), and the commission for Bitcoin transfers is only 0.5%. It is possible to convert bitcoins into some other currencies, but you will have to pay a little more. All these facts make the Bitwala service an interesting and fast way to transfer Bitcoin to bank accounts in Europe, which makes it possible not only to convert Bitcoins to Euros, but also to pay bills using BTC.
The official announcement from the service that it had added support for PayPal made this company even more interesting and popular in certain circles. It's now possible to send Bitcoin directly to PayPal accounts with the same low 0.5% commission for conversion to Euros. Now the service has become even more interesting for users around the world, and not just for clients from Europe, as was previously the case. With the introduction of PayPal support, which is the preferred method for purchasing goods on Ebay and many other online stores, the service has taken a huge step in its development. After all, PayPal allows you to attach your credit or debit card to your account and in this way you can easily withdraw funds.
Once you register with Bitwala, your account will have a monthly limit of 200 Euros, however once you confirm your email and enter other basic personal information (such as name and address), your limit will be increased to the following level: 500 Euro. For the 2000 Euro limit, you will need to provide identity verification documents, which are necessary to comply with EU law. Finally, for the maximum limit of 50,000 Euros, you will be required to have a quick Skype conversation with a company representative. For most people, even the first level of verification will be enough to try the service in action.
The first test of sending Bitcoin to a PayPal account using the Bitwala service was successful. We were able to receive the transfer 5 hours after the transfer procedure began. Of these 5 hours, approximately half of the time was spent confirming the transaction by the Bitcoin network. The service uses the Echecks method to top up PayPal accounts, and as a result, money received by this method may not be immediately available for use. It usually takes 3-5 business days for funds received through this method to be released into your PayPal account. Unfortunately, this aspect pretty much kills the usability of the Bitwala service, since you will have to wait about a week to use your funds for their intended purpose, which you would probably want to use them immediately after receiving them. Although the method of transferring Bitcoin to a PayPal account, which is linked through a plastic card to your bank account, will still be more convenient than withdrawing Bitcoin directly to a bank account through SEPA payments.
Register on the Bitwala website and transfer Bitcoin to PayPal
Dinosaur of online payments
PayPal was formed as a result of the merger of Confinity and X.com in March 2000. Initially, Confinity developed a system for transferring money between handhelds and owned the PayPal brand, and X.com tried to develop as a full-fledged online bank. In 1999, the two companies engaged in intense competition for the online (email-based) payments market on eBay and ultimately decided that a merger was the best solution for them.
Chart 1 PayPal stock has seen impressive growth over the past year
Yahoo finance
Investors and company executives initially decided to call the combined entity X.com, but potential clients thought the name was too generic or even associated with pornography. So in 2001 the company was renamed PayPal.
The first chief executive officer (CEO) of the combined company was one of the founders of X.com, Elon Musk. However, due to differences in views on the further development of the company, as well as due to an unsuccessful decision to go on vacation at a crucial moment, he was removed from his position within six months. PayPal's next director was Confinity co-founder and CEO Peter Thiel, who led PayPal until its acquisition by eBay in 2002. PayPal was part of eBay until July 2015, when it became a separate company again.
Both when it was part of eBay and in its independent status, PayPal was actively involved in purchasing various payment services. We will not give a complete list (it is quite long), but we will mention the acquisition in 2013 of Braintree, a company specializing in mobile and online payments, for $800 million. Interestingly, a year earlier, Braintree bought the Venmo mobile service for transferring money directly between individuals for $26.2 million. An important feature of Venmo is its integrated social network. PayPal is currently negotiating a purchase with the Israeli company Curv, which specializes in ensuring the security of digital assets, including cryptocurrencies.
PayPal came to Russia in 2013. The non-bank credit organization PayPal Ru received a license, and PayPal itself began to conduct transactions in rubles. In 2015, PayPal stopped serving clients in Crimea. In August 2020, I stopped making domestic transfers. As a reason, it was reported that PayPal's profit on domestic operations was only four percent. The company's office in Moscow is still maintained, and Russian citizens can still pay for their purchases in foreign stores via PayPal.
It may not be the only reason for leaving Russia. “The Central Bank has greatly reduced the capabilities of PayPal in Russia. The regulator introduced a ban on depositing funds into anonymous electronic wallets against the backdrop of a desire to suppress illegal financial activities and money laundering, says Vadim Merkulov, director of the analytical department of Freedom Finance. — PayPal in the Russian Federation does not provide a full range of services. In Russia, the banking system is also quite developed and digitalized, for example, there is an SBP, which reduces the need to use the PayPal ecosystem.”
As of the end of 2022, the total number of active PayPal accounts exceeds 377 million (24% year-over-year growth). The total value of transactions using PayPal in 2022 exceeded $936 billion, up 31% from the previous year. Operating income for 2022 was $21.45 billion (plus 22%). Free cash flow (funds potentially available for payment to investors) for 2022 amounted to five billion dollars (plus 28%). As of this writing, PayPal's market capitalization is $285.8 billion.
