Coinbase users in the US now have a new method to spend on cryptocurrencies as the popular crypto exchange has partnered with PayPal. The users can purchase cryptocurrencies such as Bitcoin, Ethereum, and Litecoin through the payment platform rather than using credit cards or wire purchases.
PayPal’s broader trend towards embracing cryptocurrencies started in November last year when the company allowed its US customers to buy, sell, and hold cryptocurrencies directly from their PayPal accounts. This year, it rolled out the option for users to pay using cryptocurrency held in their PayPal account. PayPal currently supports four cryptocurrencies namely, Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
This news about Paypal and Coinbase partnership came after many financial institutions have started to merge cryptocurrencies more and more every day.
Visa CEO Al Kelly said the company is moving into the crypto world in a big way noting that the focus is on five different opportunities that they see in this space. “This is the space that we are leaning into in a very big way and we are extremely well-positioned."
JP Morgan also announced its new crypto-related features that allow its customers to invest in a Bitcoin fund.
Coinbase said the process is fast, hassle-free and the users can “instantly fund crypto purchases” in just a few taps. Coinbase added that automated clearing house (ACH) (direct deposits) and wire transfers can take time and effort, while PayPal offers “a familiar and trusted experience”.
Coinbase users with an existing PayPal account can start using it right away and there’s no need to add bank accounts or card numbers into it. This feature is available only for US users, however, it will soon be available for users from other regions in the coming months.
Coinbase imposes a 3.99% fee
Coinbase said you can add a PayPal account via the “Add a payment method” option that will link to the PayPal login screen. The purchases made via PayPal are capped at $25,000 a day.
Keep in mind that you must fund purchases with your debit card or money directly from your bank account. Coinbase charges a 3.99% fee and depositing dollars from PayPal costs 2.5%. Make sure that the email addresses for both PayPal and Coinbase login are the same, else they will need to go through a two-factor authentication process.
As cryptocurrency becomes conventional, Coinbase hopes to attract Americans with a familiar and trusted experience.
Eddie Lo, product manager at Coinbase, said "We’re looking forward to meeting you where you already spend, pay, send, and save, and enabling more options with brands you already use. Simplicity and ease of use are core tenets of Coinbase and we are committed to delivering this promise".
Coinbase has decided to buy the platform Skew, which is an institutional data visualization and analytics platform curated for the cryptocurrency markets. It will provide real-time actionable data analytics to institutions and traders.