PayPal and Coinbase aim to bridge crypto ‘divide’
With the goal of making digital currencies more widely available and adopted by consumers, maybe… make them easier to buy. To this end, Pay Pal users can link their wallets to Coinbase, the newly listed exchange, so they can buy cryptocurrencies, including bitcoin (among others).
The ad appears to speak of a trading and currency truism – you can’t spend what you don’t have. So, linking what you might call a ubiquitous account (that would be PayPal) to an exchange with scale (that would be Coinbase) gives users a bit of momentum to pull the trigger on transactions they might have come from. to think before. It bridges the gap between watching the crypto whirlwind and getting fully involved.
The news follows the announcement Earlier this month, PayPal’s peer-to-peer (P2P) payment app Venmo now offers its estimated 77 million users their own direct ramp into the cryptocurrency arena. Users can buy, sell or hold digital currency from the app, covering bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Its Checkout with Crypto tool allows users to convert their digital currency to fiat to transact with its 29 million global merchants. PayPal said no fees would be taken at checkout.
Add a payment method
In terms of mechanics, the PayPal / Coinbase partnership eliminates at least some of the steps involved in purchasing these digital coins, where debit cards or traditional bank accounts had been the conduit to make purchases (although these options, via ACH or bank transfers, or funds in the Coinbase USD wallet, are still on sale).
In order to fund crypto purchases with PayPal on the exchange, users select the crypto they want, select “add payment method” to choose PayPal, then follow the prompts to go through multi-factor authentication and add accounts linked to the PayPal account. .
In the blog post announcing details of joint efforts between PayPal and Coinbase, Eddie Lo, product manager at Coinbase, said there are purchase limits of $ 25,000 per day with the PayPal account, which would mean purchasing bitcoin would take a little over two days.
The move follows PayPal’s announcement late last year that users could start buying bitcoin, Bitcoin Cash, and Litecoin. For PayPal transactions linked to Coinbase, as indicated on the Coinbase website, the effective conversion fee is 3.99 percent.
Separately, like reported by Bloomberg, in further evidence of cryptos’ willingness to mainstream and integrate into at least some part of daily financial activities and interactions, Social Finance has started allowing its customers to redeem earned rewards through the app of the company. These rewards can be redeemed for bitcoin or Ethereum, using the 2% cash back to be deployed in these cryptos.
Wallets, exchanges, rewards … little by little, could we evolve towards the critical mass of cryptos?
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