Payments giant Paypal has officially launched Checkout with Crypto, allowing its US customers to pay merchants in cryptocurrency.
PayPal CEO Dan Schulman told Reuters: “This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside your PayPal wallet.”
Checkout with Crypto will allow those holding crypto on PayPal to spend it with all 29 million of the platform’s merchants. The supported cryptocurrencies include Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
Shulman explained that the company would be converting the crypto to fiat for the actual payment: “We think it is a transitional point where cryptocurrencies move from being predominantly an asset class that you buy, hold and or sell to now becoming a legitimate funding source to make transactions in the real world at millions of merchants.”
PayPal won’t be charging their customers for swapping crypto to make the payment. But there will be a conversion spread that could see it swapping the crypto at a lower-than-market rate and pocketing the difference.