PayPal recently rolled out a new “Checkout with Crypto” option on its platform. The feature lets anyone with a PayPal account that has crypto purchase anything at any PayPal merchant as a payment option.
Just like you’d use cash at a counter, PayPal converts the crypto into US dollars and then uses it to complete the transaction and pay the merchant. And more so, there is also the ability to convert those dollars into the merchant’s local currency.
But wait, it won’t be for us all! The “Checkout with Crypto” button is only visible if you have a “sufficient cryptocurrency balance to cover an eligible purchase”. Then the app will show you all of your different crypto coin balances.
Another point to note is that the purchases need to be made using a single coin type.
How to Checkout with Crypto on PayPal
- At checkout, if you have a sufficient balance of cryptocurrency to cover a purchase, crypto will automatically display as a payment method.
- You will be able to select their cryptocurrency of choice. The list includes Bitcoin, Litecoin, Ethereum, or Bitcoin Cash, depending on what you hold with the payment service and the balances available in each cryptocurrency. Only one type of cryptocurrency can be used for each purchase.
- Once you confirm the purchase, the cryptocurrency is converted to fiat currency by PayPal on the customer’s behalf and the transaction is completed. The customer will receive a record of both the crypto sale, as well as the purchased item.
- PayPal charges no transaction fee to checkout with crypto. A cryptocurrency conversion spread shall be built into the conversion from crypto to USD.
Flutterwave recently penned a collaboration with PayPal to allow customers globally to pay African merchants through its ‘Pay with PayPal’ feature. Through the partnership, African businesses can connect with more than 377 million PayPal accounts globally.
This way, they can then overcome the challenges presented by the highly fragmented and complex payment and banking infrastructure on the continent. This is going to be possible via a Flutterwave integration with PayPal so merchants can add the payment service as an option when receiving money outside the continent.