PayPal Customers can now Move their Cryptos from their Accounts to External Wallets

🗣 In June, the online payment giant announced that select customers in the United States would be able to use the service as a demo, and all eligible customers in the US being able to use the feature in the coming months.

PayPal and its Venmo app are used by hundreds of millions of people all over the world to move money and the new service means that PayPal customers can also send crypto to other PayPal users in seconds with no fees or network charges.

In October 2020, the company started allowing customers to buy, sell and hold Bitcoin, Ethereum and Litecoin. However, they could not move crypto holdings off its platform – until now.

“This feature has been consistently ranked by users as one of the most requested enhancements since we began offering the purchase of crypto on our platform,” Jose Fernandez da Ponte, SVP and general manager of blockchain, crypto, and digital currencies at PayPal, said in a statement.

In March last year, PayPal launched a feature that allowed customers to pay with crypto assets across millions of online businesses. It also said earlier this year it was exploring the launch of its own stable coin, which has been dubbed PayPal Coin.

PayPal is not the first digital payment company to transfer crypto assets off its platform. In April, Robinhood said 2 million of its “eligible” customers could transfer digital assets off its platform after it activated a crypto wallet.

Transfer flexibility

🗣 This new functionality lets PayPal customers:

👉 Transfer supported coins into PayPal.

👉 Move crypto from PayPal to external crypto addresses including exchanges and hardware wallets.

👉 Send crypto to family and friends on PayPal in seconds, with no fees or network charges to send or receive.

Allowing their customers the flexibility to move their crypto assets (Bitcoin, Ethereum, Bitcoin Cash, or Litecoin) into, outside of, and within PayPal platform reflects the continuing evolution of the company’s best-in-class platform and enables customers to interact with the broader crypto ecosystem. Customers who transfer their crypto into PayPal can extend the utility of their crypto by using Checkout with Crypto products at millions of merchants.

PayPal has also been granted a full Bitlicense by the New York Department of Financial Services (NYDFS) – becoming the first company to convert a conditional Bitlicense into a full Bitlicense – signaling their commitment to responsible innovation and expanding the accessibility and utility of digital currencies while fully complying with regulatory guidelines and best practices. Adding the ability to transfer, send, and receive cryptocurrencies is another step in their journey to building a more inclusive and effective financial system.

Step-by-step by step guide

🗣 To help ensure that transfers aren’t made without authorization, PayPal has also implemented an additional identity verification process, which is described below.

👉 Transferring crypto into PayPal from an external wallet or exchange:

–  Once logged into PayPal, enter the crypto section of your application and choose the coin you want to transfer.

–  Click or tap the transfer button, which looks like: , then select “Receive.”

–  Complete any additional ID verification steps. This process is generally only required once per user.

–  Share the unique address with the sender or input it into the third-party crypto app you are sending from. Pay Pal recommends you use the QR code or cut and paste the address directly to avoid mistakes. If you are entering the address manually, double-check that it is correct!

The wallet address is created only for the selected coin, not your PayPal account. To help protect your privacy, the company generates a new “Receive” address each time you want to send crypto to your account.

🗣 Just to be sure, here’s how to do it the other way around!

👉 Moving crypto to an external wallet or exchange:

–  Once logged into PayPal, enter the crypto section of your application and choose the coin you want to transfer.

–  Click or tap the transfer button and select “Send” to transfer crypto to another unique crypto address.

–  Complete any additional ID verification steps. This process is generally only required once per user.

–  You’ll need to enter an external crypto address if you want to transfer cryptocurrency out of your account. Copy and paste an address, manually enter it, or scan a QR code by tapping the QR code button to the right of the search box.

 🤔 What are your thoughts on this? Are you ready to try it? Just a couple of things we’d like you to consider:

👌 Always remember that Crypto transfers are final and cannot be reversed and the destination address should always be of the same type (Bitcoin, Ethereum, Bitcoin Cash, or Litecoin) as the coins you are sending.

The company remarked that sending cryptocurrency outside of PayPal will have a Network Fee, also known as the Blockchain Network Fee that doesn’t depend on them. This fee is generated depending on network congestion and other factors and may fluctuate, but they will provide an estimate of network fees on the confirmation screen.