According to a press release, PayPal has launched its first crypto services in the UK in its international crypto expansion plan.
This means that, users of PayPal in UK users can buy, hold, and sell four cryptocurrenciesââBitcoin, Ethereum, Litecoin, and Bitcoin Cashââdirectly from the PayPal app. PayPal has not said whether it will bring other crypto features on the App for its users in the country.
The challenge:Â The UK hasÂ cracked downÂ on firms that offer crypto services and threatened to shut down companies that donât comply with anti-money laundering regulations by March 2022.
Likely to preempt close consumer protection scrutiny, PayPal urged UK consumers to research the risks involved with crypto before investing. It also implemented unique transaction limits for UK users, whereas it justÂ scrappedÂ its annual crypto purchase limit in the US.
The opportunity:Â In an interview with the Financial Times,Â PayPal CEO Dan SchulmanÂ outlined his companyâs commitment to digital currencies and his belief that cryptos will shift from mainly acting as an investment vehicle to soon having wider payments utility.
Schulman said central bank digital currencies (CBDCs) are âinevitableâ in the wake of Chinaâs advancedÂ pilotÂ and wants PayPal to be ready to support them.
- PayPalâs push can help the company grow its user base by attracting consumers interested in crypto:Â 18% of the US adult populationâ46 million consumersâsaid they will likely use cryptocurrencies to make a purchase this year,Â according toÂ a recent study from PYMNTS and crypto payment service provider BitPay.
- AndÂ PayPal customers who hold cryptos tend to log in twice as oftenÂ as they did before owning crypto, according to Schulman, increasing engagement and tying them closer to the app overall.
Long-term outlook:Â Expanding its crypto services into new markets brings PayPal closer to its goal of morphing into a âsuper appâ that consumers use every day.
This super app will be ready to launch later this year, according to PayPalâs Q2 earnings call, and will include messaging, a savings account, bill payments, money transfers, and shopping features. Expanding beyond traditional payments can help PayPal continue its recent success and strong growth: In Q2, PayPalâsÂ total payment volume (TPV)Â jumpedÂ 36% year over year (YoY), hittingÂ $311 billionâup from the same period last year, when the metric grew 30% YoY.