Users will have noticed a sharp increase in crypto-related ads on PayPal in recent months – it’s no surprise as the platform is substantially increasing its interest in cryptocurrencies. We take a look at how PayPal’s approach to crypto is evolving.
PayPal Raises Weekly Bitcoin Purchase Limit By 5x
In a dramatic move, PayPal has allowed users to purchase up to $100,000 worth of cryptocurrencies per week. This is a 5x increase on its previous limit of $20,000.
Available currencies include:
The lineup of currencies is fairly conservative, suggesting that the payment behemoth is hedging its bets rather than throwing itself fully into cryptocurrencies. Still, the move is significant as it indicates that the platform believes that this is what its users want.
Annual Purchase Limit Scrapped
The payment giant has also removed its $50,000 annual purchase limit – this was inevitable given that users can now purchase double that in a week. The big brains that have kept the platform moving from success to success are typically cautious, but this marks a clear transition towards letting PayPal crypto enthusiasts invest more heavily through the platform.
It indicates that the platform’s owners are still cautiously optimistic about the future of cryptocurrencies – though perhaps less cautious than before.
Should PayPal Provide Better Research Tools for Crypto?
While it’s to be expected that the platform has done its research thoroughly before making its new move towards cryptocurrencies, the same question should be asked of its users. Buying and trading cryptocurrencies requires expert decision-making, and if the platform is making it more accessible, should it be providing more educational resources for its users?
It’s common for crypto brokers to offer some educational materials for novice traders. Given the reach of PayPal crypto, it could be argued that platform needs to do more to help its userbase make wise investment decisions.
Competitive Platforms are Emerging. When Will PayPal Allow Bitcoin Payments?
Wyre and MoonPay are becoming established names in allowing cryptocurrency fans to make payments using bitcoin, ether, and some altcoins. Is PayPal’s growing interest in crypto a sign that it intends to compete with these players in the future?
UK-Based Ramp Joins Crypto Payment Platforms
A rapidly emerging name in crypto payments is the UK-based service Ramp. Marketing itself openly as “PayPal for Crypto”, the platform has been approved by the UK’s FCA and the US FinCen, marking it as a legitimate force to rival its more established competitors.
PayPal Gives No Indication of Allowing Bitcoin Payments Soon
So what if PayPal decides that it should be the “PayPal for Crypto”? It has the reach and the resources to blow the competition out of the water if it decides to make a move, but so far the platform has given no sign that it intends to switch into direct payments using cryptocurrency.
The Future of PayPal and Crypto
Originally the brainchild of renowned crypto enthusiast Elon Musk, it’s perhaps no surprise that the platform is increasingly flirting with adopting cryptocurrencies. What is certain is that such a trusted and ubiquitous service has the power to increasingly legitimize cryptocurrencies by showing an interest – watch this space.