According to an announcement in their blog, Coinbase, which is one of the largest cryptocurrency exchanges by trading volume, has added PayPal as one of the payment methods that its US users can use to buy cryptocurrencies.
Allowing users to use their PayPal accounts comes as a great relief to many since they won’t be required to provide their bank details whenever they are buying cryptocurrencies. Users can purchase any of the cryptocurrencies that are available on the exchange.
Currently, this feature is only supported for US residents though Coinbase intends to expand it to other countries in the coming months.
An instant way for US residents to purchase cryptocurrencies on Coinbase
The PayPal option provides a swift way of buying cryptocurrencies compared to using credit cards and bank transfers.
In case there is no money in the PayPal account, the user can authorize the money to be deducted from their linked debit cards or bank accounts.
Capped at $25,000
The total amount of cryptocurrencies that can be bought using PayPal at one go are however capped at cryptocurrencies worth $25,000.
The move comes as PayPal takes considerable steps towards embracing cryptocurrencies
In November 2020, PayPal started to allow US account holders to buy, sell, and even hold cryptocurrencies using their PayPal accounts. At the moment users can only buy, sell or hold four crypto coins namely bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin cash (BCH) in their PayPal accounts
Then this year (2021), the company has gone a step further to allow people with cryptocurrencies in their PayPal account to use it to make payments; although the cryptocurrencies are first converted to fiat currencies before the payment is made.
PayPal has partnered with several other cryptocurrency-based companies like Paxos, which completed its fundraising campaign for raising funds to build a cryptocurrency infrastructure on April 29, 2021, raising over $300 million.