Customers of the U.S. payment system got the opportunity to use digital money to pay for goods and services. Experts explained why this is important and can influence similar decisions in Apple Pay and Google Pay.
PayPal has allowed U.S. customers to use cryptocurrency. Users who hold Bitcoin, Ethereum, Bitcoin Cash and Litecoin in their wallets will be able to convert them into fiat currencies at the time of purchase at 29 million merchants that work with the payment system.
Against this backdrop, the bitcoin exchange rate rose sharply, peaking at $59,300 for the first time since March 20. Quotes for the cryptocurrency came close to the all-time high of $61,800 set on March 14.
PayPal’s announcement is another milestone in the global acceptance of cryptocurrency as a means of payment and a reinforcement of its fundamental importance, explained Vladimir Smetanin, CEO of Newcent, Swiss financial firm.
The event follows a string of other announcements — Tesla’s recent announcement, Visa’s news yesterday — but it is different in that it covers a huge number of outlets (29 million, according to PayPal) and therefore potentially customers worldwide — with the appropriate country legislation and access to full functionality.
Last week, Tesla added the ability to pay for its products with bitcoins. For now, the service is only available to U.S. customers; it will appear in other countries later this year. The company will not convert BTC received as payment into fiat currency.
At the same time, Visa became the first of the major payment systems which began to carry out transactions in cryptocurrency. The company transferred USDC Stablecoin using the Ethereum blockchain. Previously, it allowed its users to make transactions only in fiat currency.
PayPal, Visa, Tesla are American companies, and this is important because the cryptocurrency industry depends on certain decisions of the US Securities and Exchange Commission (SEC). Amid this news, bitcoin may soon update its historical high in value.
This kind of green light from PayPal and other payment systems could influence similar decisions in Apple Pay and Google Pay. Especially since Apple Pay executives have spoken quite positively about cryptocurrencies and have even done integration with BitPay.
Back in the fall of 2019, Apple Pay vice president Jennifer Bailey said the payments company was interested in the digital space. She said that cryptocurrencies have long-term potential and great prospects for the future. At the same time, in February of this year, cryptoprocessing service BitPay announced that it would add its card to Apple Pay.