PayPal UK Now Supports Crypto: Buy, Hold & Sell

PayPal Extends Cryptocurrency Services to the United Kingdom

For the first time, PayPal is enabling users residing outside of the United States to engage in the buying, holding, and selling of cryptocurrency. The company revealed today the introduction of a novel service designed for customers in the U.K., granting them the ability to choose from four distinct cryptocurrency types – namely, Bitcoin, Ethereum, Litecoin, and Bitcoin Cash – which can be acquired utilizing a linked bank account or debit card.

Initial Rollout and Expansion

The initial support for cryptocurrency was first implemented in the U.S. last autumn, established through a collaboration with Paxos Trust Company. This service became universally accessible to all U.S. customers by mid-November. Furthermore, Venmo, a subsidiary of PayPal, also integrated cryptocurrency support the previous spring.

U.K. based customers wishing to acquire digital currencies can now do so directly through the PayPal website or mobile application. Within these platforms, users have the option of selecting from pre-defined purchase amounts or specifying a custom amount according to their preference. PayPal confirms that purchases can begin with as little as £1 of cryptocurrency, should the user desire.

Transaction Details and Limits

It is important to note that transaction fees and currency conversion fees are applicable when buying or selling cryptocurrency. These fees are variable and dependent on the volume of cryptocurrency involved in the transaction, as the company clarifies.

The newly launched service closely mirrors PayPal’s U.S. offering, with a key distinction being the tailored transaction limits established for U.K. customers. At its inception, the maximum allowable amount for a single cryptocurrency purchase is capped at £15,000. The maximum cumulative purchase amount over a 12-month period is set at £35,000. Initially, the U.S. service launched with a $20,000 weekly purchase limit, which was subsequently increased to $100,000 in July, alongside the removal of the annual purchase limit.

Strategic Expansion and User Engagement

TechCrunch was informed that the U.K. was selected as the first international expansion location due to its prominence as a fintech center and its status as PayPal’s second-largest global market, boasting a substantial consumer customer base.

A PayPal spokesperson stated, “We anticipate contributing to the further development of the cryptocurrency ecosystem within the U.K.” They continued, “While we anticipated high demand in the U.S., we were genuinely surprised by the level of customer engagement with PayPal’s in-app crypto service from the outset.”

“Since launch, we have observed remarkable and consistent engagement from our users. Customers who buy, hold, and sell cryptocurrency on our platform in the U.S. exhibit a 2x increase in their login frequency,” they added.

Future Integration and Features

Cryptocurrency is also slated to be a central component of PayPal’s upcoming “super app,” which is scheduled for release over the coming months.

The company refrained from commenting on potential timelines for extending other cryptocurrency services, such as “Checkout with Crypto,” to the U.K. This feature allows customers to complete purchases at numerous online businesses using their cryptocurrency holdings, with an initial conversion to fiat currency. Instead, PayPal indicated a preference for observing and analyzing U.K. customer adoption of the current buy, hold, and sell offering before introducing additional features.

Investment in the Cryptocurrency Space

Beyond its direct support within its applications, PayPal’s venture capital division has also made several investments in the cryptocurrency and blockchain sectors in recent months. These include participation in a $14 million Series A funding round for TRM Labs, a cryptocurrency risk management software provider; a $40 million Series A investment in Talos, a digital asset trading infrastructure company; and a $100 million Series A investment in TaxBit, a crypto tax software company.

Jose Fernandez da Ponte, Vice President and General Manager, Blockchain, Crypto and Digital Currencies at PayPal, commented, “The pandemic has expedited digital transformation and innovation across all facets of life – including the digitization of money and increased consumer adoption of digital financial services.”

“Our global reach, expertise in digital payments, and understanding of both consumers and businesses, coupled with robust security and compliance measures, uniquely position us to assist individuals in the U.K. in exploring cryptocurrency. We are dedicated to ongoing collaboration with regulators in the U.K. and worldwide, offering our support and actively contributing to the evolution of digital currencies within the global financial and commercial landscape,” he concluded.

Current Availability and Future Plans

Currently, PayPal’s cryptocurrency support is available in the U.S. (excluding Hawaii and U.S. territories) and the U.K. The company also stated it is actively investigating the potential for digital currencies through partnerships with licensed and regulated cryptocurrency platforms and with central banks in other regions globally.