American multinational fintech firm PayPal finally announced that its users will now be able to transfer cryptocurrency from their accounts to other wallets and exchanges. The recent move came amidst growing customer demand, it said.
As per the press release, the new functionality will allow PayPal customers to transfer supported coins into their own, move crypto from its app to external crypto addresses including exchanges and hardware wallets and send crypto to other users “in seconds.”
Customers, however, have to bear the network fees for external transfers, which depend on the blockchain and vary depending on the crypto asset. Internal transfers will carry no fees, it added.
Jose Fernandez da Ponte, SVP and general manager of blockchain said, “If users have crypto somewhere else and want to consolidate, they can bring it to PayPal from external addresses. They can also send crypto to anyone who is in the PayPal system.”
PayPal’s tryst with crypto began in October of 2020 enabling users to buy, sell, and hold crypto.
At Consensus last year, Fernandez da Ponte confirmed that offering its users the ability to transfer would be next and termed a natural conversion in a fast-changing fintech landscape.
PayPal To March Ahead Undeterred By Market Turmoil
Despite the rough market condition in the crypto space, Fernandez da Ponte believes that the payment giant is moving in the right direction “as people are still adopting cryptocurrencies.”
“This move shows we’re in this for the long term,” Fernandez da Ponte added. “I think it’s important to stay the course and continue to invest in the space.”
The latest feature is currently available to US users and for security reasons, the platform has implemented an additional identity verification process for users before they can transfer any crypto.
Additionally, the rollout will be a gradual one and would be extended to others who have completed the identity verification process in the coming weeks.
According to sources, PayPal was able to offer the new functionality after transitioning from a “conditional” BitLicense to a “full” one after obtaining permission from the New York Department of Financial Services.
