PayPal Holdings Inc (NASDAQ:PYPL) said Tuesday will offer cryptocurrency withdrawal services, allowing funds to be withdrawn to external wallets and exchanges.
What Happened: Digital currencies and assets, such as Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Litecoin (CRYPTO: LTC), can now be withdrawn from PayPal to foreign wallets.
This new service offered will enable higher transaction rates for other wallets, such as Coinbase and Metamask.
According to Decrypt, Paypal is working on offering numerous new and unique cryptocurrency services to their users.
Furthermore, Paypal does not charge transaction fees, contrary to cryptocurrency exchanges, due to its long-term vision with regard to crypto-based financial services.
Jose Fernandez da Ponte, SVP of PayPal's cryptocurrency and blockchain department, told Decrypt: “The whole reason we're in crypto is because we believe a substantial portion of commerce is going to move to digital currencies.”
Why It's Important: The incorporation of cryptocurrencies into the sector of financial services and technologies has been a key occurrence over the last two years. As firms such as PayPal and Robinhood Markets Inc (NASDAQ:HOOD), further integrate new features into their interface and better the user experience for investors, the more the sector is likely to grow.
Allowing funds to flow from external wallets such as Metamask into PayPal and vice versa allows PayPal, traditionally a means for electronic payments, to function as a channel connecting fiat services and the world of digital assets and Web3.
Benzinga's Take: As cryptocurrencies are further regulated and recognized as transactional commodities, their integration into the modern financial world is inevitable.
Companies such as PayPal are imperative to this integration as they enable consumers and users of a digital era to take the next leap forward into an age of transacting via digital currencies.
