Are PayPal and Cryptocurrency Getting Along Too Well? 

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This week, the Justice Department in the US formed a new enforcement unit dedicated to cryptocurrency crimes. Money laundering and cyber crimes seem to go hand in hand, or rather like social media platforms. They can all congregate incognito online. Where you find money laundering, you have criminal groups trying to hide money profiting in illegal ways, such as through drug dealing or hitman services.

Keeping cryptocurrency away from such criminals is the new task force’s main priority. So, where does PayPal fit in with this? First, consider how PayPal just established its service for using cryptocurrency, called Checkout with Crypto. How well is the service working in terms of customers? Second, are there chances the PayPal platform could become a hiding hole for criminals using crypto for criminal purposes?

Digital Currency Is On Trend

In terms of finding a way for customers to pay for items online, digital money is everywhere. Starting with the online wallet at PayPal, where you can receive and spend cash, and ending with cryptocurrency—there’s a lot of ways to pay for items online these days. So keeping up with the current trend is critical for most online storefronts and major retailers.

Maybe this has to do with the increased amount of work from home and computer-bound professionals seeing fewer actual people and more digital transactions for payments. On the other hand, this is also why PayPal could be a primary target for illegal groups who want to hide money laundering activities. In addition, there is a significant lack of transparency. Whatever the circumstances, let us look at how well PayPal and cryptocurrency like Bitcoin are getting along in terms of consumers and the online retail markets.

PayPal Offers Checkout With Crypto

PayPal has a feature that allows consumers to pay and trade in cryptocurrencies like Bitcoin and Doge. Formerly known as Checkout with Crypto, the service has been available since March 2021; customers at PayPal can check out with cryptocurrency. In addition, it is possible to use crypto converted into fiat currency. But for now, there aren’t any extra costs associated with using Checkout with Crypto.

As President and CEO of PayPal Holdings, Inc., Dan Schulman explained more about the purpose of Checkout with Crypto. “As the use of digital payments and digital currencies accelerates, the introduction of Checkout with Crypto continues our focus on driving mainstream adoption of cryptocurrencies while continuing to offer PayPal customers choice and flexibility in the ways they can pay using the PayPal wallet. Enabling cryptocurrencies to make purchases at businesses around the world is the next chapter in driving the ubiquity and mass acceptance of digital currencies.”

Yes, but in terms of competition, that is still fierce in the financial sector. PayPal works by trading cryptocurrency via platforms like eToro. You can also use crypto like Bitcoin as a payment option when using PayPal. Best yet, there aren’t any fees to do this, which is excellent for business owners trying to trim down extraneous expenditures.

Here we are in October, six months after Checkout with Crypto was revealed by PayPal. How does the program fair? According to an article published last month, PayPal customers using Checkout with Crypto can still make purchases with cryptocurrency. In addition, they can buy crypto on four platforms:

  • LocalBitcoins
  • xCoins
  • eToro
  • Coinbase

This is a good sign that the PayPal platform is moving strongly in the waves of digital currency rather than bucking the trend it started. The momentum is certainly helping people get richer, too, by freeing up the restrictions on the use of digital money. But, unfortunately, while dollars in cash are the gold standard in this nation, we continue to experience plenty of urban areas running short on change during the pandemic. For example, signs are up all over the Greater Seattle area, where business owners simply don’t have enough pennies to make the correct change to give to paying customers.

What this tells us is that digital money and cryptocurrencies are going to continue to have a stronghold. It is not going away any time soon. We are seeing momentum toward making Bitcoin and other cryptocurrencies more available and accessible. While you can’t hold Bitcoin in your hand, you can use it to buy a house and food. Now is the time for consumers to learn how cryptocurrency works through increased access.

A prominent online financial platform like PayPal spearheading this movement via Checkout with Crypto greatly benefits alt-financial businesses. These businesses are just trying to increase crypto availability for customers. Since so many customers are now using PayPal in some capacity, the openness to use crypto there is just refreshing. If you are trying to make money investing in cryptocurrency and want to increase control over your digital money, this is the way to roll. PayPal has been a mainstay in digitized financial services for a while now, and most US consumers have become users in some capacity. Therefore, it is easier for consumers to openly trust PayPal in transactions involving their cryptocurrency.

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