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PayPal Adding Support for Third-Party Bitcoin Wallets

A new report cites comments from PayPal’s head of blockchain and cryptocurrency indicating that the payments giant intends to provide support for Bitcoin transfers off the platform and to third-party wallets soon. What does the news mean for the future of crypto payments and cryptocurrency rewards? Here is what you need to know:

PayPal Adding Crypto Wallet Support

PayPal added the ability for users to buy, sell, and hold Bitcoin on its platform late last year. Now, the payments giant is seeking to add support for third-party Bitcoin wallets in 2021. According to a report from crypto news site, Decrypt, Jose Fernandez da Ponte, PayPal’s head of blockchain and cryptocurrency, made the announcement at the Consensus conference last week.

“We want to make it as open as possible, and we want to give choice to our consumers,” Fernandez da Ponte said. “We understand there is more utility to those tokens if you can move them around, so we are definitely exploring how we can let people transfer crypto to and from their PayPal addresses.”

When the third-party crypto wallet support would be rolled out was not immediately apparent. Also omitted was how PayPal plans to handle the blockchain transactions when users send and receive crypto through the service. Currently, PayPal uses Paxos to handle all Bitcoin operations.

Is Crypto Ready for the Mainstream?

The new PayPal feature would make it easier for consumers to use cryptocurrencies in everyday life – a major hurdle in helping crypto going mainstream. Crypto is currently enjoying exponential growth in many sectors, with more and more services seeking to add Bitcoin and other cryptocurrency integrations.

Banks and other lenders are also getting in on the action, with many crypto rewards cards set to launch in 2021. PayPal itself may get in on the move, with the payment platform rumored to be creating its own stablecoin.

Related Article: Is Bitcoin the Future of Credit Card Rewards?

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About: Cory
Cory Santos

Cory is BestCards.com's "Jack of all trades" and resident credit expert, covering all facets of the credit card space. In addition to credit cards, Cory finds that jogging, cats, and memes are essential parts of a balanced day.