PayPal has announced an important upgrade to its peer-to-peer (P2P) payment service that now allows Bitcoin, Ethereum, and its own stablecoin PYUSD to be included directly inside the app. This enables U.S users to send and receive cryptocurrencies as simply as sharing a custom payment link through text, email, or chat. This new feature, known as PayPal Links, also keeps things simple and private, since no personal crypto transfers between friends and family are subject to IRS taxes.
This integration is a crucial step toward making Bitcoin and other digital assets widely usable for everyday payments. The goal is to embed cryptocurrency right into everyday usage payments as part of routine financial services.
How to Use Bitcoin with PayPal’s New P2P Payment System?
1. Getting started with PayPal crypto features
- To get started with PayPal crypto features, begin by downloading or updating the PayPal app.
- Log in and verify your identity, if prompted (crypto features are limited to U.S. accounts for now).
- Within the app, proceed to either the crypto area or the finance area.
2. Buy Bitcoin or transfer Bitcoin to your PayPal wallet
- Buy Bitcoin from PayPal with your bank account or debit card.
- Or you can send Bitcoin to your unique Bitcoin PayPal address from any external wallet.
3. Sending Bitcoin with PayPal links
- Click “Send” and select Bitcoin as your currency.
- Instead of sending wallet addresses that can get complicated, you can generate a unique PayPal Link (a one-time, personalised payment link) that allows the person you are paying to click a link and have Bitcoin sent to them, instantly, inside their PayPal wallet.
- This link can be sent via text, email, or chat apps.
4. PayPal Crypto / Bitcoin Request
- You may access this option by clicking the ‘Request’ or ‘Receive’ prompt in PayPal’s Crypto section.
- Create a PayPal link or send your PayPal-registered email or phone number for a sender to transfer Bitcoin to your PayPal account.
5. Tax and Security Benefits
- There should not be IRS 1099-K tax filings when sending crypto in personal payments between friends and family, which provides a level of privacy common in typical personal payments.
- Security and speed are part of PayPal’s payment infrastructure.
6. Global and Future Proof
- After the U.S. launch, PayPal plans to implement this feature in the UK, Italy and other markets as their goal is to be custodians of cryptography in the whole world.
- PayPal’s crypto features work in multiple environments, including sending crypto to individual PayPal platforms (PayPal and Venmo) and external wallets built for PayPal’s acceptability.
Why is this important?
By adopting the use of Bitcoin in its P2P payment technology, PayPal can eliminate most of the obstacles that cryptos can cause by integrating them into the chat and messaging section of the app. This is a big move towards developing a normalised digital currency in our day-to-day lives and is way beyond trading and investing in a token. Using the PayPal Links, transferring Bitcoin becomes as simple as clicking on a link, and this will represent a new direction in use and mainstream adoption.
Diego Scotti, General Manager of the Consumer Group at PayPal, expressed it in the following way: Your money follows your conversations – a short overview of how PayPal is integrating a crypto product with habitual financial behaviour to form a seamless and inclusive digital money experience.
This is an ambitious mix of innovative payment technology and cryptocurrency that establishes PayPal among the leaders of digital wallet innovation and points towards the even wider uptake of crypto worldwide.
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