Last Updated: 11 August 2021
According to Dan Schulman, the initiative is already “code complete” and will be completely ramped up in the United States in the next months. PayPal, a payment processing corporation, has stated that its consumers may not have to wait long for further crypto capability on the platform.
On Wednesday, PayPal CEO Dan Schulman stated the initial version of the company’s super app wallet was “code complete” during the company’s Q2 2021 investor update call. PayPal’s CEO stated that the wallet would be fully operational in the United States within the next few months.
High-yield savings, early access to direct deposit funds, messaging, “additional crypto capabilities,” and other features will be available in the super app wallet. Each wallet would be “unique,” according to Schulman, and would be “powered by powerful AI and machine learning capabilities.”
As of July 29, PayPal had over 400 million active user accounts, with $311 billion in total payment volume during the second quarter of 2021. With 76 million active accounts, Venmo, the PayPal-owned payments company that introduced crypto trading in April, had around $58 billion in total payment volume in the second quarter of 2021.
The PayPal CEO stated, “We’re one of the only payments businesses that allows consumers to use cryptocurrencies as a funding source.” “We’re also seeing a lot of bitcoin adoption and trade on Venmo.”
PayPal said earlier this month that it would raise the limit on crypto purchases for certain US users from $20,000 to $100,000. The payments company initially stated that it would enter the crypto area in October 2020, with qualifying users eventually being able to use cryptocurrency for trading and payments.
Users of PayPal will be able to withdraw cryptocurrency to third-party wallets.
PayPal’s support of cryptocurrencies appears to be deepening, with the company announcing that customers would be able to withdraw their digital assets to third-party wallets.
The revelation was originally reported by Reuters on Wednesday afternoon, just seven months after PayPal made cryptocurrency purchases possible on its platform. The decision was hailed at the time as a watershed moment in the general acceptance of digital assets.
Instead of holding their cryptocurrencies on PayPal or selling them into fiat cash for withdrawal, PayPal users will be able to transmit them to other wallets. Neither Reuters nor PayPal have stated when the cryptocurrency withdrawal feature will be available. If the initial deployment of third-party wallets is anything like PayPal’s decision to allow bitcoin purchases last fall, it will be slow and location-based.
PayPal’s acceptance of cryptocurrency appears to be based on a well-defined plan, with digital-asset use cases expected to develop rapidly over time. Over the next decade, CEO Dan Schulman expects we will see a “tremendous drop in the use of cash,” adding:
“All forms of payment will be absorbed by the cell phone. Credit cards as a form factor will become obsolete, and you will instead rely on your phone, which may provide far more value than simply touching your credit card.”
Schulman also stated earlier this month that PayPal’s crypto division was already generating dividends to the corporation. “With our crypto efforts, we have a tremendous amount of really amazing achievements going on tactically,” he said.