PayPal supports digital currency transfers to external wallets

After launching the ability to buy and sell cryptocurrencies on its platform in October 2020, PayPal finally allows users to transfer, send and receive digital assets natively between PayPal and other wallets and exchanges. The feature was available to select U.S. users as of Tuesday, and it will expand to all eligible U.S. users in the coming weeks. The first supported coins include Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC).

Additionally, customers who transfer cryptocurrencies to PayPal can spend through Checkout at millions of merchant terminals. The company has received a Bitlicense issued by the New York Department of Financial Services.

Users just need to log into their accounts and go to the encrypted part of the app to start transferring money. Before this process, users usually need to complete an authentication.

Cryptographic transfers to recipients outside of PayPal incur network fees based on their respective blockchains, but transfers between PayPal users do not incur such fees. In order to protect the user's privacy, PayPal generates a new recipient address for each PayPal account transaction of the user. PayPal also doesn't charge fees for transfers.

PayPal is also working to integrate other forms of cryptocurrency services, such as central bank digital currencies, to expand its digital footprint. It is also exploring the possibility of launching its own stablecoin "PayPal Coin". Previously, a developer found evidence of the stablecoin in the source code of PayPal's iPhone app.