PayPal US Customers Get a Fivefold Rise in the Weekly Crypto Limit
Payment provider company PayPal has lifted the purchase limit of bitcoin and other cryptocurrencies to $100,000 per week for eligible customers in the United States and removed annual limits altogether.
The company is also getting rid of its yearly purchase limit of $50,000. PayPal’s weekly crypto purchase limit was $20,000 in February.
The payments giant first let customers buy, sell, and hold cryptocurrencies — bitcoin, ethereum, bitcoin cash, and litecoin — directly from their PayPal accounts in October 2020, following the footsteps of Square’s Cash App. When the service first began, the spending limit was $10,000.
According to a company survey, about 20% of PayPal users said they had been using its crypto services two months down the line.
Expanding Crypto’s Utility
The company hopes the change will bring digital assets to mainstream buyers and fueled bitcoin’s rally earlier this year. The world’s first and largest cryptocurrency has lost about half its value since the all-time high above $60,000 in April. Bitcoin was trading at about $31,000 on Thursday afternoon, while PayPal shares closed over 1.4% lower.
PayPal is in a partnership with crypto services company Paxos Trust Company that enables its crypto offerings. The company custodies and trades the assets on behalf of Paypal. PayPal customers’ crypto is changed into fiat to settle the transaction with the merchant once transactions are done.
Crypto’s utility has expanded immensely, allowing individuals to utilize their holdings for purchases within the famous 26 million worldwide merchant network.
The firm has been discreet concerning its average monthly cryptocurrency volume, but in April, CEO Dan Schulman said he expected the number would hit $200 million within months.
Advancing its Features
The company also plans to boost its in-app guides and educational materials on cryptocurrency to dispel myths surrounding virtual currencies. Earlier this year, PayPal invested in Taxbit, giving consumers and businesses an effective way to calculate the taxes owed on cryptocurrency holdings.
Statista notes that PayPal had over 390 million active user accounts as of the first quarter of 2021. In addition, the company has advanced to invest in blockchain-focused firms like Blockchain Capital and blockchain intelligence platform TRM Labs.
Fintechs are setting themselves apart from traditional banks by embracing crypto trading. PayPal is not the only company taking advantage of rising consumer demand for cryptocurrency support.
World’s second-largest card payment organization Visa supports debit cards issued by crypto exchange Coinbase and crypto services provider Crypto.com. Just recently, Visa partnered with crypto exchange BlockFi to launch the first crypto credit card.