Paypal

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PayPal
Paypal logo.jpeg
Founded 1998
Headquarters San Jose, California
Key People Dan Schulman, CEO; Elon Musk, co-founder; Peter Thiel, co-founder
Employees 23,200
Products P2P electronic payment services
Twitter @PayPal
LinkedIn Profile
Facebook Page
Website PayPal
Releases Company News
Blog Our Views

PayPal is one of the largest electronic cash transmitting services in the world. At the end of 2019, PayPal had 309 million active account holders.[1]

PayPal and cryptocurrencies

In December 2018, Coinbase announced that it was adding the ability for customers to link their PayPal accounts with their Coinbase accounts, allowing them to pay for cryptocurrency with fiat currency or store fiat in their PayPal accounts earned from cryptocurrency trades.[2] In February 2019, Coinbase extended this service to European users, specifically those in countries that are members of the European Union (EU) and the European Free Trade Association (EFTA).[3]

PayPal was long rumored to be interested in getting involved in cryptocurrencies when it said it would join the Libra Association in June 2019. It later said that it was dropping out of the association in October of that year.[4]

The company formally signaled its interest in a comment letter on cryptocurrency regulation to the European Union in March 2020.[5]

BitFlyer Europe announced on September 21, 2020 that it had integrated euro payments with PayPal, which is a dominant operator in the European payments space.[6]

In October 2020, PayPal announced that it and eventually Venmo would begin offering buying and selling services for cryptocurrency starting in 2021. PayPal had gained a conditional bitlicense from the New York Department of Financial Services (NYDFS) contingent on its collaboration with Paxos, which will be responsible for ensuring the regulatory compliance of the new service, using Paxos' technological assets to facilitate payments, providing liquidity, and managing private keys for PayPal customers' wallets.[7][8][9] Purchases and sales of crytpocurrencies are conducted on Paxos's ItBit trading platform.[10]

Bloomberg reported later in October that PayPal was in talks to acquire BitGo Inc., a South Dakota-registered cryptocurrency custodian.[11] Talks ended without a sale in December 2020.[12]

CEO Dan Schulman noted there is growing global interest in CBDCs (Central bank digital currencies) and in digital walletsTelling analysts during the company's third quarter 2020 earnings call on November 2, 2020. He said he views cryptocurrencies as cheaper and more efficient to use than the current predominant ACH (Automated Clearing House)-based systems.[13]

Amid the general market turbulence of early January 2021 PayPal saw $242 million in cryptocurrency sales on January 11, a record level for the company, according to online data aggregator Nomics.[14]

Key People

  • Elon Musk, co-founder
  • Peter Thiel, co-founder
  • Dan Schulman, CEO

References

  1. 2019 Annual Report. PayPal.
  2. Coinbase Users Can Now Easily Make Fiat Withdrawals via PayPal. Coinspeaker.
  3. Coinbase Extends PayPal Withdrawal Option to 32 European Countries. Coindesk.
  4. PayPal Drops Out of Facebook’s Libra Payments Network. WSJ.
  5. PayPal Told EU It Had Crypto Plans Back in March. CoinDesk.
  6. Crypto exchange bitFlyer Europe links up with PayPal, enabling account deposits with euros. The Block Crypto.
  7. PayPal to enable crypto purchases with the help of Paxos. The Block Crypto.
  8. PayPal will soon offer Bitcoin and other cryptocurrency purchase options. Fortune.
  9. PayPal will soon offer Bitcoin and other cryptocurrency purchase options. Fortune.
  10. Bullish or bearish? PayPal hosts $242M in crypto trading over 24 hours. Cointelegraph.
  11. PayPal in Talks to Buy Crypto Firms Including BitGo. Bloomberg.
  12. PayPal Talks to Buy Crypto Firm BitGo Have Ended, Other Targets Eyed: Report. CoinDesk.
  13. PayPal plans a much wider embrace of cryptocurrency, including Venmo use. Fortune.
  14. Bullish or bearish? PayPal hosts $242M in crypto trading over 24 hours. Cointelegraph.