PayPal Increases Weekly Cryptocurrency Purchase Limit Fivefold to $100,000
PayPal is one of those examples in the sector that created success thanks to expanding their trading methods.
Not long after Square’s Cash App, PayPal had also started to allow its U.S. customers to buy and sell cryptocurrencies such as bitcoin, ethereum, and litecoin. Then, it made it possible for 70 million users to trade cryptocurrencies through its mobile payment app, Venmo. A few months after this development, the company launched “Checkout with Crypto,” which offered the option to use crypto to make payments. At the time of purchase, the cryptocurrency is automatically converted into a U.S. dollar or other currency.,
As the latest step of turning to virtual currencies, PayPal now allows its users to buy $100,000 per week. The previous limit was $20,000, so this means a five times increase in the allowed amount. Plus, it removes the annual limit of $50,000 altogether.
Jose Fernandez da Ponte, the vice president and general manager of blockchain, crypto, and digital currencies at Paypal, recently stated that “these changes will enable our customers to have more choice and flexibility in purchasing cryptocurrency on our platform.”
Since the launch of crypto trading in October 2020 in PayPal, as the company states, there has been an active engagement with customers “to understand their needs better” so that it could provide “a trusted and secure platform to buy, hold, sell and checkout with cryptocurrency.”
The payments company stated: “As part of our efforts to meet the ever-changing needs of our customers, we are pleased to announce that we have recently raised the purchase limits of cryptocurrency for eligible Paypal customers in the U.S. to $100,000 per week; with no annual purchase limit.”
In addition to these changes, PayPal also releases educational materials about cryptocurrency and adds information into the in-app guides. This way, it aims to dispel myths around digital currencies.
The Chief Financial Officer of PayPal, John Rainey, spoke at JP Morgan’s annual tech conference and said that people who hold and purchase crypto use the app twice as much as others. Rainey added that half of the crypto holders are using the app daily, and most are checking the current prices of their holdings. PayPal’s goal behind this crypto push is to increase the engagement of customers with the company.
The president and CEO of the company, Dan Schulman, told me a few months ago that the first quarter of 2021 was the “strongest quarter ever with record financial and operational results.” It seems that PayPal is constantly improving and adapting itself to the developments in the world of cryptocurrency.