Wednesday, February 28, 2024

Cryptocurrency purchase limits increased by PayPal

PayPal, the payments giant, has increased the purchase limit of cryptocurrencies like Bitcoin to $100,000 per week. However, this is available for only the eligible customers living in the United States. The company has removed its annual limits.

Up until now, the weekly crypto purchase limit for PayPal customers was only $20,000. The company let the customers hold, sell, or buy cryptocurrencies directly from their accounts in PayPal in October 2020. This includes cryptocurrencies like bitcoin, bitcoin cash, litecoin, and there. This move expanded the crypto’s utility greatly as it allowed people to make purchases within the 26 million worldwide merchant network of PayPal through their holdings.

Even though the company has not spoken about the average monthly cryptocurrency volume, Dan Schulman, CEO of PayPal, told Forbes that they were expecting the number to reach $20 million within months.

Currently, the crypto offerings by PayPal are enabled through their partnership with Paxos Trust Company, a crypto services organization. Paxos Trust Company trades and custody the assets on behalf of the customers and Paypal. Once the transaction has been completed, the crypto of PayPal customers is converted into fiat for settling the transaction.

 

However, PayPal is not the only organization that is making changes to meet the increasing demand of customers for cryptocurrency support. Visa, one of the most popular electronics payments providers, supports debit cards that are issued by crypto services provider Crypto.com and crypto exchange Coinbase. They recently partnered with BlockFi and are planning to launch their first crypto credit card.

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