PayPal announced last week to great fanfare that they will be launching a new service enabling US customers to buy, hold and sell cryptocurrency directly from their PayPal accounts. This service will kick off in the US in Q4 of this year, with an international launch scheduled for 2021. With the payments giant now throwing their massive user base and reputation behind cryptocurrencies, the price of Bitcoin increased and settled firmly above $13,000. PayPal’s own stock soared by almost 6% the same day, a movement that clearly indicates that blockchain and cryptocurrencies are receiving much interest from the public. One thing is for certain: Paypal is bringing cryptocurrency exposure to the mainstream.
PayPal’s move is bold, and a game-changer for the blockchain community: they have over 346 million active accounts, with 26 million of them being merchants. Their user penetration in the US alone is nothing to scoff at, Statista reports that 14% of US online shoppers had PayPal as their most utilized online shopping payment method in 2018, and their app can be found on more than 50% of phones as of 2019. Their subsidiary, Venmo, is also one of the largest P2P transaction wallets in the US – and also slated for cryptocurrency support in 2021.
PayPal’s Move Is Transformative But Read The Fine Print
If there is any company with the reputation and reach capable of transforming cryptocurrencies, it’s likely to be PayPal. But their announcement has not been without the fine print: PayPal’s service only allows users to literally “buy, hold and sell” cryptocurrencies. Users will not be receiving the actual Bitcoin, but a custodian-held, centralized equivalent that PayPal adds to the user’s PayPal wallet. Unlike Oobit and most cryptocurrency exchanges, PayPal’s cryptocurrency service will not allow withdrawals and deposits, and seems to be intended (at least in its infancy) to be a way for consumers to be exposed to and able to easily acquire Bitcoin as an investment asset.
For the average person who may just want exposure to cryptocurrencies as an asset class, PayPal’s service may be enough. But if you’re a user who wants proper access to cryptocurrencies not just as an asset but a technology and tool of the future, PayPal offers nothing that existing crypto platforms don’t already offer, and is “dumbed down” for the consumer.
Oobit Brings Crypto To Everyone In A User-friendly, Protected Manner
With Oobit’s positioning as a user-centric, reliable and protected platform, we believe that our offerings are much more flexible and critical for proper cryptocurrency usage. We allow users to purchase Bitcoin and other cryptocurrencies like Ethereum (ETH), Litecoin (LTC), Ripple (XRP) and more with a credit card, debit card, or bank account – just like PayPal offers. However, our custodianship solution still allows for transfers, withdrawals, and peer-to-peer transactions – with the highest levels of security. More importantly, all our custodial assets are backed by $500 million of insurance coverage, an attestation to our focus on security and flexibility.
We also offer exchange services between 150 cryptocurrencies instantly, with the best rates on the market. Launching soon is also our wallet-connected Oobit Debit Card that allows you to cash out your cryptocurrency at ATMs all around the world – and make payment to over 40 million stores worldwide.
|Allows withdrawals for true ownership?||Yes||No|
|Allows peer-to-peer transactions?||Yes||No|
|Instant exchange between 150 cryptocurrencies?||Yes||No|
|Secure and insured for $500 million?||Yes||Maybe|
|The best prices on the market?||Yes – trade with hundreds of liquidity partners and all the largest exchanges through one platform.||Coins priced and sourced through a third party partnership with Paxos Crypto Brokerage.|
Building A Cryptocurrency Solution For Everyone
It may be that PayPal can bring mainstream adoption to cryptocurrency, but not every user will be satisfied with the limited offerings that they are providing. You won’t be able to interact with smart contracts, use the transformative power of decentralization, or adopt cryptocurrency in a way that is utilizing its best traits – things which make blockchain the uniquely independent technology it is today. As consumers ourselves, we believe that the best way to believe in what we’re investing in and what we’re using is to learn, something which is embedded at the core of our offerings.
If you’re new to cryptocurrency and finally believe in it thanks to PayPal, don’t just stop by for a quick look or become a passive investor. As PayPal is bringing cryptocurrency exposure to the mainstream, there is still a lot more to know about the powers that Bitcoin and blockchain technology can offer. And the best news is, we’re here to help – just check out Oobit and our blog to begin your journey!