PayPal has started allowing U.S. users to spend their cryptocurrency holdings at millions of online merchants globally, Reuters reported Tuesday.
The development means PayPal users who hold bitcoin (BTC), ether (ETH), bitcoin cash (BCH), and litecoin (LTC) in PayPal digital wallets can now convert their crypto holdings into fiat to make purchases. PayPal is said to be officially announcing the news later today.
“This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside your PayPal wallet,” said PayPal CEO and president Dan Schulman. “We think it is a transitional point where cryptocurrencies move from being predominantly an asset class that you buy, hold and or sell to now becoming a legitimate funding source to make transactions in the real world at millions of merchants.”
PayPal first revealed the service last October, and it will be available at all of the company’s 29 million merchants in the coming months, per the report. PayPal will not charge any transaction fee to pay with crypto, and customers can only use one type of cryptocurrency for each purchase.
The crypto checkout service comes in addition to PayPal’s crypto buying and selling offering that the company launched last October. PayPal’s social payments platform Venmo is also set to provide crypto buying and selling this year, as The Block reported previously.
Last month, Schulman said PayPal is “significantly investing” in its crypto unit to help shape a more inclusive future.
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