Payment platform PayPal enabled a new feature allowing people to purchase some online goods with cryptocurrency. The new service is part of the company’s bid to enter the cryptocurrency world, including launching a business unit focused on blockchain and digital currencies.
The feature, dubbed Checkout with Crypto, is built on the ability to buy, hold, and sell cryptocurrency through PayPal. The service allows customers to sell cryptocurrency through the platform to fund some online purchases during checkout.
The platform converts cryptocurrency to US dollars at checkout with no additional cost and transparent conversion rates. Checkout With Crypto supports Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. PayPal notes customers can only use one currency per payment.
“Until now, offering cryptocurrency as a payment type has been challenging for businesses — from integration requirements, technical barriers, and general lack of awareness among consumers,” said Jim Magats, SVP of Omni Payments for PayPal, explaining how the system works.
“Checkout with Crypto allows businesses to accept the proceeds from sales of cryptocurrency as a payment type, all within the current PayPal integration, removing the need for any additional action for businesses. PayPal handles the crypto sale and conversion with the consumer and passes on US dollars to the business for the purchase, streamlining the process for businesses.”
PayPal announced its entry into cryptocurrency last October after receiving a license from the New York State Department of Financial Services to allow Venmo users to buy, hold, and sell cryptocurrency.
PayPal CEO Dan Schulman explained the company had designed a comprehensive product roadmap built around blockchain, crypto, and digital currencies. The company also recently announced it planned to acquire Curv, a blockchain startup based in Tel Aviv.
Checkout With Crypto is rolling out to American users, and PayPal expects to expand the businesses it can be used for in the coming months.