Paypal Launches Cryptocurrency Services in the UK

Paypal, the payments processor giant, informed it would be launching its cryptocurrency services in the U.K this week. The cryptocurrency service, which was launched in the U.S. in October 2020, will allow U.K. citizens to purchase cryptocurrencies and hold them in their Paypal accounts. This will be Paypal’s first foray into offering cryptocurrency services outside the U.S.

Paypal Expands Crypto Business to U.K.

Paypal, the multimillion-dollar payment processor, announced the expansion of its cryptocurrency-based services to the U.K., starting this week. According to reports, the offer will be similar to the one available in the U.S. Paypal will allow U.K. citizens to purchase four cryptocurrencies from its platform: bitcoin, bitcoin cash, ethereum, and litecoin.

Paypal expects the demand for the service to be high, similar to the response so far from its U.S. crypto initiative. Jose Fernandez da Ponte, PayPal’s general manager for blockchain, crypto, and digital currencies, stated:

It has been doing really well in the U.S., we expect it’s going to do well in the U.K.

Paypal’s service will keep using Paxos as one of their key partners to offer this functionality. Paxos is a regulated cryptocurrency company based in New York. According to CNBC, the company has already contacted regulators in the U.K. regarding this service, to ensure compliance with current laws.

Crypto Demand Going Strong

Paypal’s cryptocurrency service is enjoying big success in the U.S. In fact, Paypal’s CEO Dan Schulman declared the demand for cryptocurrency products has been “multiple-fold” of his company’s initial expectations. This is because the company puts growing importance on easing the way of customers into crypto. Da Ponte stated:

The tokens and coins have been around for a while but you had to be a relatively sophisticated user to be able to access that. Having that on a platform like ours makes a really good entry point.

But Paypal didn’t just limit itself to offering investment services for its customers. The company is also shifting its service strategy to offer cryptocurrency payment processing. On March 30, the company announced it had launched a new product called “Checkout With Crypto,” which enables crypto payments at millions of online stores.

However, Paypal still functions as a closed ecosystem, not allowing their customers to withdraw purchased cryptocurrencies to third-party wallets, something that has earned them criticism from crypto users.