The world’s most popular online payment service PayPal now offers cryptocurrency services in the United Kingdom. Digital currencies will be accessible and aimed at companies that provide blockchain-based financial technologies.
PayPal’s bold step can be in other words translated as leveraging the payment processor’s infrastructure, processes, and established compliance program to build an agile business and invest the resources necessary to build a compelling product.
PayPal users in the UK can now invest their money into cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash.
PayPal now allows people to buy cryptocurrency assets as little as £1. But, looks like the giant payment processor had more goodies for its customers. Good times to be a PayPal client.
Last month, they raised the weekly purchase limit for customers in America up to $100,000 – a surprising move that will likely be popular with users who are interested in cryptocurrencies but anxious about buying into an uncertain digital market.
Why the UK?
PayPal announced their expansion of its crypto services to the UK, which marks the company’s first international foray.
However, the giant payment processor emphasized its commitment to meeting regulations in all jurisdictions. The introduction of cryptocurrencies as a new service will attract both clients and investors. However, other PayPal clients from different parts of the world may have to wait a little longer for the project to be set in motion.
The fact that PayPal has chosen the United Kingdom as a starting point for its cryptocurrency services might be explained by the country’s relatively lenient approach to regulating the industry.
The UK Treasury is even considering making amendments to financial regulations, which would result in fintech companies’ shares being exempt from the stamp duty.
The country is also known for being a leader in the blockchain sector, with some of the most well-known companies such as Blockchain, LocalEthereum, and Coinfloor having their headquarters located there.
In its official statement, PayPal said, “Customers can choose from pre-determined purchase amounts or enter in their own purchase amount, before following the prompts to buy the cryptocurrency of their choice. Customers will be able to fund their PayPal account for the purchase using their bank account or debit card.”
A Glance at The UK’s Crypto Space
Digital currencies have taken the UK by storm. Since the beginning of 2021, there has been a significant increase in their adoption across all industries and sectors of business. Just a look at peer-to-peer purchases and retail spending using cryptocurrencies as well as online searches for terms such as “bitcoin” or “cryptocurrency” will show you this.
Investment management firms have been adopting digital currencies at a rapid rate in the UK since 2021, with Bitcoin and other cryptos now officially part of their balance sheets.
Last November, Ruffer Investment Management bought Bitcoin valued at nearly $600 million. In April 2021, they made a billion dollars from their holdings of the cryptocurrency and became one of the most profitable venture capitalists in history.
PayPal is uniquely positioned to change the game for cryptocurrency in the UK.
With their global reach, digital payments expertise, and knowledge of consumer behavior as well as business operations, working with them will enable us to explore more opportunities within a safe regulatory framework that allows both businesses and consumers alike can part take.
But, the retail demand for digital currencies is not the only positive sign as the overall crypto user base has increased significantly in the last few months. With giants in the finance space like PayPal making such big moves, we can only expect even better days for cryptocurrency clients.