PayPal to launch crypto services globally in 2021. Senior executives at global payments giant PayPal have shared further information about its intentions to aggressively push into the crypto market next year during the firm’s Q3 2020 earnings call. This also includes plans to support central bank digital currencies (CBDCs).
“Clearly the world is rapidly moving from physical to digital,” said PayPal CEO Dan Shulman, emphasizing the accelerated rate of change within the payments and financial services sectors.
Citing discussions with central banks, regulators, and crypto industry leaders, Shulman asserted “There is no question that digital currencies are going to be rising in importance, having increasing functionality, and increasing prominence.” “CBDCs […] are a matter of when and how they’re done, and not if.”
PayPal’s chief executive said that through its scale and prominence the company will “help shape the utility of [CBDCs],” including facilitating interoperability with existing payment rails and fostering acceptance among merchants. Shulman also described the legacy financial system as “not working” for many ordinary people.
“I do think that our platform and all the new digital infrastructure that we’re putting in place right now can help make that management and movement of money more efficient, less expensive, and faster.”
While just 10% of PayPal’s U.S.-based users currently have access to its crypto services, Shulman noted the rest of the country expected to come online before December. “Our waiting list was two to three times what our expectations were.”
“We’re seeing people who have already bought crypto open their wallet several times a day to check out what’s happening with their crypto investments,” he added.
Shulman reported that PayPal would raise its weekly crypto transaction cap from $10,000 to $15,000, in response to the demand. Shulman also announced that PayPal’s virtual currency services will be made available to foreign customers in the first half of next year, along with the introduction of its Venmo mobile payment app.
“Over the course of next year, you’ll see us move into a couple of different areas,” the CEO added.