In one way fintechs have set themselves different from traditional banks is by adopting crypto trading. For many of the biggest names in the payment sector, the expansion has so far been a success. Like for PayPal. The company is following in the footsteps of Square’s Cash App, the company has begun allowing US members to buy, hold and sell Bitcoin, Litecoin, Ethereum, and Bitcoin cashback in November. Also, Paypal followed that with the option to checkout with crypto in March and brought cryptocurrency trading to its subsidiary Venmo the following month. Now, as part of its ongoing plan into digital currencies, PayPal is increasing the number of crypto users who can buy to $100,000 per week and scrapping the $50,000 annual limit altogether.
The expansion marks a five times increase to the service’s crypto purchasing limit in less than a year. PayPal says it’s also adding to its in-app guides and educational materials on cryptocurrency to help dispel myths around virtual currencies. In January, PayPal made an investment in a US-based tech startup called Taxbit, which helps consumers and businesses to calculate the taxes owed on cryptocurrency holdings.
The payments company has made it clear that its cryptocurrency push is about driving confidence. Speaking at JP Morgan’s annual tech conference in May, PayPal CFO John Rainey said that people who have purchased crypto use the app twice as much as others. A large part of that is people checking the prices of their holdings. Rainey added that 50 percent of crypto holders use the app daily.