You can now use PayPal to buy products with select cryptocurrencies, including Bitcoin.
Starting today, the “Checkout with Crypto” feature will be gradually rolling out for customers in the US. For the first time, PayPal will accept Bitcoin, Litecoin, Ethereum, or Bitcoin Cash as a payment option for millions of businesses across the globe.
The feature works by converting the select cryptocurrency into US dollars—but with no additional transaction fee tacked on, according to PayPal. You’ll just need agree to what conversation rate the company offers.
However, there’s a big caveat to the Checkout with Crypto option. You can’t transfer any existing Bitcoin or Ethereum you own into your PayPal account, probably to prevent cybercriminals from exploiting the feature. Instead, you must buy the select cryptocurrency from the company in order to use it on PayPal.
“Additionally, the Cryptocurrency in your account cannot be transferred to other accounts on or off PayPal,” the company says in its FAQ. The other limitation is how only one type of cryptocurrency can be used for each purchase.
Still, Checkout with Crypto may help break down one of the biggest obstacles facing cryptocurrency adoption—most retailers have never accepted the digital currencies as a payment option. In October, PayPal made a major move to embrace the technology by enabling users to buy, hold, and sell the select cryptocurrencies for no extra fees.
“Eligible users can purchase crypto in the PayPal wallet for as little as $1, and when you check out with crypto, we’ll take care of the sale and conversion of your crypto holdings to cover the purchase,” said PayPal SVP John Kunze in a statement.
The ability to pay with cryptocurrency should automatically appear alongside the other payment options during the checkout process. PayPal plans on broadly rolling out the feature to all US-based users within the coming weeks.
