Bloomberg News reports that PayPal Holdings Inc. will allow users to transfer specific digital tokens to other customers, external wallets, and exchanges, which will be a new service as part of the company’s measures to foster the usage of its app.
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In an interview, Jose Fernandez da Ponte, who is the senior vice president and general manager for blockchain, digital currencies, and crypto business of the company, stated that it is all about utility and access. The company is also trying to enhance the utility of moving around crypto.
As per the company, the New York Department of Financial Services has granted a “BitLicense” to PayPal, which will govern the businesses working with the virtual currencies, according to the statement on the website of the company on Tuesday. PayPal also revealed that it is the first company to convert a conditional BitLicense into a full-fledged one.
PayPal earlier started to allow customers to buy, hold, and sell Bitcoin, Bitcoin Cash, Litecoin, and Ethereum in late 2020. The new service introduced by the company will allow the customers to transfer these coins, including from crypto exchanges like Coinbase Global Inc.
Bloomberg News reports that PayPal is pivoting away from simply putting in the effort to add millions of new users, and instead seeks to encourage the prevailing customers to use the app more frequently. It is a strategy of the company. The average revenue per active account was seen to double for those customers who use the services beyond just the traditional checkout button that PayPal has known for so long. According to the company statement, it has revealed that the customers open their wallets twice as often after signing up for the crypto offerings.
PayPal has also been exploring by launching its stable coin. It is interested in connecting users with the web3. It is the catchall term related to decentralized finance, crypto applications, and nonfungible tokens, although Fernandez da Ponte is saying that no specific decision has been taken.
The downturn that has taken place of late in the crypto market will not prevent PayPal from continuing to expand its crypto team. Fernandez also stated that they think a substantial amount of payment and commerce will occur related to the digital currencies in the future, and the company is already playing the long game.
