PayPal (NASDAQ:PYPL) is beefing up its crypto game with merchant payments but there are a few caveats worth noting about this new program.
First and foremost, anyone using crypto on the platform has to deal with taxes. That due to PYPL switching out the crypto for fiat currencies before moving forward with the transaction. That means that the company will send a 1099 tax form to users of the service. That’s definitely something customers using crypto on PayPal will want to keep in mind.
The second disadvantage of the service is that customers can’t withdraw cryptocurrencies to their personal wallets. This is again due to the PayPal crypto merchant program converting the digital assets to normal currencies before the deal takes place. At the same time, this means the service can’t be used to send crypto between friends.
Finally, merchants that make use of the PayPal crypto payments service won’t see any of the digital assets from the sale. Instead, they are paid with the analog currency that the crypto is converted into.
Now that we have those conditions out of the way, investors are likely wondering what crypto the PayPal merchant payments program supports. The company is allowing Bitcoin (CCC:BTC-USD), Litecoin (CCC:LTC-USD), Ethereum (CCC:ETH-USD), and Bitcoin Cash (CCC:BCH-USD) to be used with the service.
Dan Schulman, president and CEO of PayPal, said this about the news.
“As the use of digital payments and digital currencies accelerates, the introduction of Checkout with Crypto continues our focus on driving mainstream adoption of cryptocurrencies, while continuing to offer PayPal customers choice and flexibility in the ways they can pay using the PayPal wallet.”
PayPal isn’t the only company in the news lately due to its cryptocurrency plans.
Other companies are also starting to accepting crypto as a legitimate form of payment. Recent news of that includes Visa (NYSE:V), AT&T (NYSE:T), Tesla (NASDAQ:TSLA), and others. You can learn more about companies accepting crypto payments at the links below.
More Crypto News
- Blockchain Stocks: Why EBON, RIOT, CAN and MARA Stocks Are on the Move Today
- 5 Companies You May Not Know Accept Crypto Payments
- 7 Companies Ready to Accept Your Crypto
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.