Increase in servess
PayPal Holdings (PYPL) fulfilled its promise last month by making its PayPal Cryptocurrency application available to all registered users in the USA. The service was launched on 21 October in test mode for a limited number of users.
Commenting on the financial report on 2 November, PayPal CEO Daniel Schulman said: "Only 10% of PayPal customers in the US have had access to cryptocurrency services so far".
A wide audience of Americans now have the opportunity to trade in digital format with such popular crypto currencies as (Bitcoin, Litecoin, Ethereum, etc.) from 26 million sellers. However, the company does not allow the cryptocurrency to be sent to other users accounts (this will be possible with the launch of the cryptocurrency on the Venmo platform) or to be sent to an external digital wallet. According to a PayPal representative, the company's plans to launch Cryptocurrency on the Venmo platform and international markets in the first half of 2021 remain unchanged. PayPal is working with Paxos, a New York-based financial services firm that stores all cryptocurrencies on behalf of PayPal. In order to attract as many cryptovoltaic customers as possible, PayPal has stated that it will not charge any fees when buying or selling cryptovoltaic until 31 December 2020. By analyzing demand for a limited number of users, PayPal has raised the crypt currency purchase limit from $10,000 to $20,000 per week.
The Company has also confirmed its intention not to charge for the storage of crypto-currency in its personal PayPal account.
According to the latest quarterly report of PayPal, the total number of active accounts on its platforms increased by 22% to 361 million and customer engagement also remained high.
With the launch of PayPal Cryptocurrency, the Bitcoin price rose by 32.54% between 21 October and 11 November.
Square (SQ), a competitor to PayPal, launched a similar cryptocurrency service back in 2018, last month the company bought Bitcoin for $50 million.
PayPal shares, which have increased by 74.8% since the beginning of the year, fell sharply by 7.56% last week.