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PayPal is Soon Going to Accept Cryptocurrencies

At the end of 2020, PayPal CEO Dan Shulman announced that global platform owners are working on a big feature for its web app that would have an impact on the company's service quality. Such news has inspired traders and people involved in e-commerce. This project is already in its final stages, and people who have opened e-wallets on this platform will be able to start using additional "cryptocurrency opportunities" as early as 2021. Let's see how such a function will be for people who make payments.

What Exactly are the Improvements PayPal is Implementing?
Dan Shulman told Earnings Calllot of debate that the company is constantly improving its digital technology services and 2021 will be a breakthrough year in this regard. Among other things, PayPal CEO promised users an improved version of the application for monitoring funds on wallets. The latest update is called the "Super Application Wallet". PayPal‘s developers have integrated additional cryptographic functionality, simplifying access to trading and allowing everyone to save on payments. Of course, it’s promising.

PayPal recently raised its limit on digital asset transactions. People who have opened e-wallets on this platform can buy up to $100,000 in crypto per week with no additional monthly or annual restrictions. It's about good investment prospects. But, the add-on service will only be available to users in the United States. Accounts with cryptocurrency market-linking capabilities will be unique and will be based on Ai or machine learning.

Introduction of Cryptocurrencies into e-Commerce
Once cryptocurrency transactions become available for PayPal e-wallets, it is expected that thousands of people will want to buy digital assets for speculative reasons or pure disinterested curiosity. This is certainly a key factor that will affect the dynamics of the market and the interest of investors in 2021. Experts are confident that Bitcoin will not be the only digital asset to be widely used with PayPal e-wallets. Of course, it’s the most common cryptocurrency, so its adoption is taken for granted. However, other coins such as Ethereum, zCash, and Litecoin may be accepted by large businesses. PayPal, as a global competitor in the market, is unlikely to be aloof from such global changes.

It would be fair to say that Dan Shulman and his team are interested in introducing cryptocurrency beyond PayPal. This is not their only digital commerce business. We’re talking about Venmo, owned by the same parent company, which has completely different functions. PayPal is primarily for money transfers and e-commerce. Venmo is popular for ordinary citizens who want to send payments. Dan Shulman and the company's management are unlikely to deny the increase in demand for BTC in all such areas.

Investment Prospects
Due to the coronavirus crisis, people increasingly prefer to shop online that’s associated with good prospects for payment systems. PayPal's revenue exceeded $6 billion in the first quarter of 2021. This means that a global platform is preferred by thousands of people all over the world. Although the top management of this company does not want to stop there. This team is unlikely to miss the chance to concern themselves with global market changes. PayPal’s developers and analysts are always ready for new challenges and this is confirmed by reports.

CEO Dan Shulman sees BTC as the main driver for the impressive results of his team. He also mentioned in another interview that cryptocurrency trading platforms users are showing great interest in digital assets. Of course, it’s a global trend. What cryptocurrency resources were discussed is not reported. When the new update was first announced, analysts and financiers assumed that Bitcoin, the world's most popular blockchain tool, would be the first to add. Although PayPal's top management has not confirmed such information. The experts had a lot of guesses about this. As a result, it turned out that PayPal would partner with third-party cryptocurrency agencies. This is to provide liquidity for the trading activity to take place.

What About Risky Trades?
The PayPal service update is likely to impact Bitcoin and cryptocurrency in general in the coming years. This could mean short-term price increases or long-term market stability. In any case, this is an increase in investment in digital assets on a permanent basis. The adoption of cryptocurrency by global businesses is somehow related to market fluctuations. One of the key consequences of this will be associated with trading. This is because investor interest will increase as soon as PayPal and similar companies announce global partnerships with cryptocurrency projects. Although it can also provoke attempts to manipulate the BTC price.

According to crypto industry influencer Lark Davis, the Cash app sold 50% of all bitcoins mined in the first quarter of 2020. Although the platform has an impressive 40 million users, it is almost 8 times smaller than PayPal. Does this mean an attempt to influence the price in order to earn extra money? Analysts have different opinions on this. With the introduction of cryptocurrencies, it will be interesting to see how many bitcoin resources go to PayPal users. The owners of this platform are unlikely to want to get caught up in market manipulation, and this could mean an additional incentive to invest.

In Summary
Perhaps one of the most important prospects for cryptocurrency projects is the integration of Litecoin and Bitcoin into payment transactions of global companies. It’s also about PayPal’s app. On June 22, this company allowed users to buy cryptocurrencies directly through their e-wallets. After such an update, over 325 million people will have access to additional payment tools. Experts are confident that it's about real and good prospects for any business.

While there are a lot of debates about what Bitcoin can take from PayPal, it is worth considering how bitcoin will help to improve PayPal. When the Cash app was first released, it caused thousands of new sign-ups, and soon the platform was popularized faster than Venmo, another payment app owned by PayPal. So, all news about adopting cryptocurrency should be taken as a perspective. This is a global trend for the next 3-5 years, and it can significantly change the market.
Author: David Walker