PayPal enables the buying and selling of Bitcoin in Great Britain
On Monday, payments giant PayPal launched new services allowing UK customers to buy, hold and sell Bitcoin and other cryptocurrencies. The service will be available for personal accounts, and not for professional accounts, which have verified their identity with the platform.
Jose Fernandez da Ponte, vice president and general manager of blockchain, crypto and digital currencies at PayPal, commented: “The pandemic has accelerated digital change and innovation in all aspects of our lives, including the digitization of money and greater consumer adoption of digital financial services. . ”
This is the first expansion of PayPal’s bitcoin trading services outside of the United States. The platform also simultaneously launched educational content on Bitcoin and other cryptocurrencies on the platform.
Jose continued, “Our global reach, digital payments expertise and knowledge of consumers and businesses, combined with rigorous security and compliance controls, provide us with the unique opportunity and responsibility to help people. in the UK to explore cryptocurrency. “
The announcement comes after PayPal CEO Dan Schulman hinted during the company’s second quarter earnings call that Bitcoin’s buy and sell feature is coming to Britain, a development that sees PayPal following through on promises it made in February. PayPal’s new crypto offerings were made possible through a partnership with Paxos Trust Company.
Customers can now buy, hold and sell as little as £ 1 of Bitcoin on the platform through the website or mobile app. The functionality of the app is still quite limited, as customers cannot send or receive Bitcoin. For Bitcoin users who see the app as a way to facilitate consumer onboarding, however, there is hope that core wallet features enabling Bitcoin withdrawals and deposits will be available soon.
Without the ability to withdraw Bitcoin to another wallet, it is doubtful that PayPal allowed access to Bitcoin. The functionality is more like a owe you for Bitcoin, a price exposure vehicle that popular exchanges like Robinhood also offer.
These include transaction fees and currency exchange fees for buying and selling through the platform, a feature that other mobile payment service providers like Square’s Cash app also have. While Cash App has consistently made efforts to give Bitcoiners control over their withdrawal fees and allow free in-chain off-chain transfers, they still charge hefty fees on purchases.
The leader in this space is Strike, which makes it possible to buy, sell, transfer and receive Bitcoin with virtually no sensation. It is important to note that neither Cash App nor Strike gives access to altcoins. PayPal’s provision of altcoin access shows that it chooses profit over understanding. This marks a nascent understanding of Bitcoin, but is an improvement nonetheless.