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PayPal To Reportedly Offer Crypto-Trading Through Paxos Partnership

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In recent news, PayPal has announced that it may soon offer users the ability to perform cryptocurrency trading. This announcement follows a partnership that PayPal is signing with Paxos, a popular stablecoin operator situated in the United States.

PayPal has been somewhat limiting in terms of using the platform for the purpose of trading with cryptocurrencies in the past. This meant users had to find alternative ways of handling their money if they wanted to trade with these currencies.

With this announcement, there is the hope of now reducing the need for a third-party when trading through a PayPal balance. 

Paxos Crypto Brokerage

Prior to the announcement of a partnership between PayPal and Paxos, news related to a new brokerage platform from Paxos started circulating. The first publication made by Paxos was on the 15th of July. 

Paxos announced that they are launching a new brokerage service. The service offers a secure way of buying and selling digital assets. The announcement also stated support for a large variety of products that can be used through an integration with this new brokerage system.

In the report published by Paxos, they announced Revolut US to be the very first customer to implement a system that used the new Paxos Crypto Brokerage platform. 

This system has a design that focuses on providing a full compliant platform and essentially enhances the security of digital asset exchanges that end users perform through integrated technologies.

Both liquidity and security remain primary priorities in the Paxos Crypto Brokerage system – which are some of the most important factors that companies look for when integrating with these systems. 

PayPal And Paxos Reported Partnership 

PayPal is a digital payment gateway that people use for both personal and business purposes. Many websites integrated PayPal as a payment gateway, which makes it exceptionally easy for business owners to accept payment directly on their website or e-commerce store. 

Over the years, PayPal has remained one of the most used online payment systems – but it isn’t until very recently that the company decided to delve into the world of digital assets. 

The recent announcement from PayPal is considered important news for the world of cryptocurrency. This is a move that many have been waiting for – as it provides solid evidence that the cryptocurrency industry is not going anywhere, but will rather continue to grow in the future. 

The announcement from PayPal came after the publication of a press release by Paxos, related to their new Crypto Brokerage integration platform. PayPal has not provided any specific details on the matter yet. Some publications have reached out to PayPal for comments on the possible partnership, but no responses have been reported yet. This still makes for big news as there are many PayPal users that have an interest in performing trades on the crypto market. 

PayPal will be using the new Paxos Crypto Brokerage system in order to deliver cryptocurrency functionality to its users. The brokerage system will likely allow users to make trades on stablecoin options directly from PayPal, cutting out third-party systems that are currently used. This would also ultimately lead to a reduced cost on the user’s side, making PayPal a more attractive and secure system for crypto traders to utilize. 

PayPal did announce its interest in the world of cryptocurrencies previously. PayPal was a member of what is known as the Libra Association. This is a proposed stable-coin that was initiated by Facebook, the world’s biggest social media platform. In October 2019, however, PayPal announced that it withdrew from the Libra Association. This news came after skepticism from regulators and the public related to the proposed stable-coin that Facebook had planned. 

According to some sources, PayPal also considered an integration with Coinbase to assist in the integration of a crypto trading platform on its payment system. It does seem like PayPal has decided to move into a different direction. Recent reports suggest that PayPal will not be using Coinbase any more, but rather decided to move over toward a partnership with Paxos. 

paxos

What Does This Partnership Mean?

PayPal is a strong and worldwide payment gateway. The payment gateway was initially founded in 1998. In 2002, eBay acquired PayPal. In July 2015, PayPal started to trade separately from the eBay brand. It is now a publicly-traded company that has grown toward a preferred option for digital payments in North America. PayPal is also known throughout the world and used as a payment gateway in many other countries. 

According to a report by Statista, about 99% of all US adults with internet access are aware of what PayPal is. The PayPal mobile application reaches about 53.5% of US internet users. Additionally, an estimated 14% of online shoppers in the United States choose to pay with PayPal during the checkout procedure. 

In 2020, PayPal reports that it has more than 325 million active accounts on the platform. This accounts for worldwide users. The platform experiences a 17% annual growth in terms of active accounts. These statistics continue to grow. 

We are also seeing an increase in the number of brick-and-mortar stores in the United States opening up to PayPal as a digital and mobile payment solution. This is further increasing the use of PayPal as a payment option. The platform has made it easier for store owners to accept payments through PayPal and makes the process effortless for the customer as well. 

These statistics show why it is such an important move for PayPal to start offering a crypto trading platform. As the biggest payment gateway and one of the longest-running digital payment solutions, PayPal is a globally recognized system. 

Even though these reports about PayPal’s partnership with Paxos have surfaced, it is important to note that further data is still needed. PayPal has not responded to news publications that requested more information about the reported partnership, which means users and those excited about this possible move from the payment giant is still left with anticipation. 

Some publications report that we should see more details published about this partnership within the coming week. PayPal is likely to provide data on the reasoning for the decision to go with Paxos and explain to their users what the integration of his Crypto Brokerage platform means for them. We are also still waiting to see the specific cryptocurrency trading pairs that will be made available to users of the PayPal platform, and if any restrictions will be put in place. 

Once this partnership is officially established, many crypto traders will turn toward PayPal in order to enjoy the security and stability that comes with the system. PayPal is not only a major payment system, but also make factors like security and ease of use a priority. This essentially helps to protect the user against fraud and other related matters. 

Conclusion

PayPal has been a preferred online payment gateway for quite some time, but haven’t dived into the world of cryptocurrencies – until now. A recent announcement suggests that PayPal may be partnering up with Paxos, with the implementation of their new Crypto Brokerage system. This will open up new opportunities for cryptocurrency traders and investors, as they might be able to make exchanges directly from their PayPal dashboard. 

References

PRNewswire

Statista

Statista 2

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