Coinbase has revealed that consumers in the United States will now be able to purchase cryptocurrencies using their PayPal accounts. It claims that the feature provides a “familiar and trusted” experience for users purchasing any of the various cryptocurrencies that the exchange currently supports, and that using PayPal as an intermediary eliminates the need to send the cryptocurrency exchange your bank account or debit card details directly. In the coming months, the function will be expanded to other nations.
“Wire transfers and automated clearing houses, or ACH,” which are traditional transaction-processing systems, “can take time and effort, and we know you expect quicker and more streamlined ways to make cryptocurrency transactions,” the post continued. “With only a few clicks, you can now instantly finance crypto transactions with PayPal.”
Coinbase says you can use the new feature by adding your PayPal account via the “Add a payment form” option, which takes you to the PayPal login page. PayPal purchases are limited to $25,000 a day, or 0.46 Bitcoin at the time of writing. To buy cryptocurrencies, you can use debit cards and bank accounts connected to a PayPal account, but prepaid cards and credit cards aren’t supported, according to a Coinbase FAQ.
The latest PayPal payment feature in Coinbase’s app looks like this.
You can invest up to $25,000 a day on Coinbase using PayPal to purchase cryptocurrency. A few years ago, Coinbase stopped accepting credit card purchases of cryptocurrency.
Cash withdrawals from Coinbase to PayPal are currently available in the United States, Canada, the European Union, and the United Kingdom. In the coming weeks, Coinbase expects to add more nations.
The announcement is part of PayPal’s wider move to embrace cryptocurrencies. The company began allowing US users to purchase, sell, and keep cryptocurrencies directly from their PayPal accounts in November of last year, and this year it added the ability for users to pay with cryptocurrency stored in their PayPal accounts (though this is converted to local currency before a merchant is paid). In comparison to the thousands available on Coinbase, PayPal currently only supports four cryptocurrencies natively: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.