PayPal, one of the largest merchant network for online payments has entered the cryptocurrency market, announcing that its consumers will be able to buy and sell Bitcoins and other virtual currencies using their PayPal accounts.
Other payment firms, such as Square’s Cash app and Revolut, have already offered cryptocurrencies for sale.
When it comes to using virtual coins, PayPal will convert the cryptocurrency into the relevant national currency, so the company being paid will never receive the virtual coins – just the correct amount of pounds or dollars.
Those virtual coins could then be used to buy things from the 26 million sellers which accept PayPal, the company said.
PayPal plans to roll out buying options in the US over the next few weeks, with the full rollout due early next year.
Bitcoin prices rose alongside the news, breaking the $12,000 (£9,170) mark.
The other cryptocurrencies to be added first will be Ethereum, Litecoin, and Bitcoin Cash (a spin-off from Bitcoin).
All could be stored “directly within the PayPal digital wallet”, it added.
Cryptocurrencies are still a niche payment method because of the rapid change in prices they can experience as compared to traditional state-backed currencies. However, they became really popular among some types of investors.
PayPal said it was aiming “to increase consumer understanding and adoption of cryptocurrency”.
“As part of this offering, PayPal will provide account holders with educational content to help them understand the cryptocurrency ecosystem,” it said.
