Paypal, one of the biggest online payment processors in the world with over 300 million users, has partnered with Paxos to launch its new cryptocurrency service. This is going to be a huge step for the fintech giant and is expected to bring massive growth.
Paxos Crypto Brokerage is a solution that was launched last week by Paxos with Revolut U.S. as its first client. This API – based service has been set up to allow fintech firms to integrate cryptocurrency buying, selling, holding and sending capabilities into their own applications. Along with this, Paxos will manage regulatory, technological, and liquidity issues.
These days cryptocurrency is becoming indispensable for fintech companies. But PayPal has so far remained out of it. However, with other major players like Robinhood, Square’s Cash App, eToro and SoFi already offering crypto services, it was a necessity for PayPal to introduce its own, though some of the other giants like Wealthfront and Betterment haven’t done that yet.
This PayPal decision is not an unexpected one as there were rumors about its joining the crypto sector. In March, the firm told that it is setting up crypto capabilities in a letter to the European Commission.
In this twenty-first century’s world of speed, cryptocurrency is gaining more popularity every day, especially among the youth. According to a report by Zabo, 18% of US millennials use crypto, and 42% plan to buy it in the next five years.
Growth stories of fintech firms also reveal the same fact. After launching Robinhood Crypto, Robinhood had over two million downloads in the first three months of 2018. Also, in the first quarter of 2020, Square’s Cash App made a profit as big as $306 million in Bitcoin sales. The gain was 367% more than that in the same quarter of the previous year.
These data reveal the immense importance and potential of cryptocurrency which has been reflected in PayPal’s move of launching crypto services.
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