In 2020, PayPal obtained a conditional BitLicense from the New York State Department of Financial Services to offer crypto services in New York in partnership with cryptocurrency company Paxos. The e-commerce company allowed US users to buy, sell, or hold cryptocurrencies on its platform while rolling out in other countries.
In its second quarter report, PayPal has revealed plans to expand its merchant services to the UK following its incredible performance in the period under review.
This was confirmed by PayPal CEO Dan Schulman:
Yes, well, we remain happy with the momentum that we are seeing in cryptocurrencies. We're going to launch, hopefully maybe even next month in the UK, and open operations there.
PayPal is working to increase its ability to integrate into its Automated Clearing House (ACH) for faster payment. ACH is an electronic service that helps merchants obtain payments from customers by directly debiting their checking or savings accounts.
Schulman mentioned that incremental functionality is being added to crypto trading. As it stands, the cryptocurrency purchase limit has been increased to $ 100,000 per week. In addition, he mentioned that the adoption and trading of cryptocurrencies on Venmo was very positive as “Pay with Venmo” saw revenue growth of 183 percent year-over-year. In April of this year, Venmo introduced crypto trading to its 70 million users.
PayPal explores possibilities to add DeFi to its platform
PayPal also has plans for other financial products as they explore possibilities to add smart contracts and DeFi to the platform. This is in line with a leaked video at the EthCC conference in Paris that revealed that Uniswap is in talks with many fintech platforms, including PayPal, to integrate DeFi.
According to Schulman, this is a possibility.
How can we use smart contracts more efficiently? How can we digitize assets and open them up to consumers who may not have had access to them before? There are some cool DeFi apps too. And that's why we are working hard.
The effort to catch up with the evolving financial industry will compensate for gaps in traditional infrastructures.
According to Schuman, the financial infrastructure is inefficient, so there is a need to embrace modernization. This is to overcome costly and time consuming transactions. He believes that there will be a considerable decrease in the use of cash in the next ten years.
All the factors of form of payment will collapse on the mobile phone. Credit cards as a form factor will disappear, and you will use your phone because a phone can add much more value than just touching your credit card.