How many times have we switched to PayPal to transfer money internationally? With this online wallet allowing you to transfer funds between more than 200 different countries, you can easily work on foreign projects and get paid in different currencies based on the currency exchange rate at the time of transfer. However, the recent announcement by PayPal allowing the native transfer of cryptocurrencies between PayPal and other wallets and exchanges has sparked considerable interest among people seeking payment in cryptocurrencies.
The idea of using cryptocurrencies as an alternative payment mechanism and a potential investment option has prompted many people to include this virtual currency in their investment portfolios. Secured by blockchain technology, investing in cryptocurrencies is more of a passionate affair for those willing to take risks. The prices of cryptocurrencies can be volatile, which means that holding around one to two cryptocurrencies in your portfolio can help you earn returns beyond what most other investments fetch. With more people warming up to the idea of parking a part of their earnings in cryptocurrencies, many PayPal users had requested this online payment company to offer cryptos on its platform.
This feature allowing crypto transfer between PayPal and other wallets has been made available to select users in the US from June 07, 2022, and is expected to be made available to all in the coming weeks. The new functionality allows PayPal users to
- Transfer supported coins into your PayPal account.
- Move cryptocurrencies from PayPal to other crypto addresses
- Easy transfer of crypto between PayPal and other wallets apart from crypto exchanges.
- Gift or send crypto to family members and friends on PayPal through immediate transfer sans involvement of any fees or network charges to send or receive.
PayPal is officially the first payment mechanism that allows its customers to move their multiple crypto assets both within and outside PayPal platforms. This means that PayPal customers can now transfer both money and cryptos apart from making payments using Crypto products. This is a big move considering how many countries have assented to payments using cryptocurrencies with some even allowing the purchase and sale of fixed assets like houses using these.
Crediting crypto into PayPal from another wallet or exchange
PayPal users must log in to their PayPal accounts to avail this facility. Simply by entering the crypto section of the application, they can choose the coin they intend to transfer. Just click on the “Transfers” button and select “Receive” to receive the crypto into your wallet. Additionally, the users may be asked to complete some additional ID verification steps that they have to submit only once per user.
For the transfer of cryptos using this platform, users must share the unique address with the sender or input it into the third-party crypto app they are sending from. Users are advised to use the QR code or cut and paste the address directly to avoid mistakes. This is important as neither PayPal nor the sender would be able to recover the coins credited to a mistyped address.
Also, the wallet address is created only for the coin selected and not the PayPal account. This explains why PayPal generates a new “Receive” address every time any of its users wants to send crypto to his or her account. Though there are no service charges for the transfer of crypto into one’s PayPal account, users may have to pay network and sender fees. The processing times vary across transactions.
Moving crypto from PayPal to an external wallet or exchange
This is easy as the users just need to log in to their PayPal accounts, enter the crypto section of the application and then choose the coin(s) they want to transfer. They then have to tap on the “Transfers” button to send the crypto to another unique crypto address. They must then complete the additional ID verification steps that are required only once per user. Apart, a user must enter his or her external crypto address to transfer cryptocurrency out of the PayPal account. Just copy and paste the address or manually enter the details or scan the QR code by tapping on the QR code button appended to the right of the search box. Also, users must refrain from sending crypto to unfamiliar addresses.
Sending cryptos outside of PayPal will incur some charges including Network Fees also called the Blockchain Network Fees. However, this fee is not charged by PayPal and is generated depending on network congestion and other factors. The amount is not fixed and varied depending on myriad factors. PayPal users get an estimate of the network fees they must pay on their confirmation screens.
Transferring cryptos between PayPal users
The users must log in to their PayPal accounts, enter the crypto section of the application and choose the coin they want to send. The “Send” process remains the same using the “Transfers” button. Then, select the PayPal account to which the crypto needs to be sent and confirm the transfer devoid of any charges or fees.
