Paypal has launched its crypto services in the UK. The US payment service provider said it would enable its users to buy, hold and sell cryptocurrency on the platform.
Paypal allows clients to trade in Bitcoin, Litecoin, Ethereum and Bitcoin Cash with as low as £1. At the same time, the platform allows users access to real-time crypto prices and access to educational content about the crypto market. They can get to understand the various opportunities and risks in the crypto world and find answers to common crypto concerns.
The expansion of Paypal into the UK market marks the first major growth of its crypto services for international access. It first launched the crypto service in November last year and has since kept it for US users.
Paypal can draw from its success in the US market as an indication of what’s possible for the UK market. Given Paypal is a trusted financial platform it makes it easier for crypto enthusiasts or those curious about digital currencies to gain entry into the crypto world. The ease of trading and access to information means it can easily become a mainstream crypto player in the UK. However, currently cryptocurrencies can’t be deposited or withdrawn from the platform.
Jose Fernandez da Ponte, Paypal’s general manager for blockchain, crypto and digital currencies, believes the platform’s global reach, knowledge of consumers, and digital payment expertise gives them the upper hand in the market. He also cites compliance controls and rigorous security as other advantages they offer the UK market.
As with the US version of the crypto platform, Paypal uses Paxos, a US regulated digital currency company to offer crypto buying and selling services. It also engaged with various UK regulators when launching.
Growing adoption
Paypal joining the UK market is an indication of the ever-growing crypto market. As cryptocurrencies become more popular, several people are looking to join the market. Already, there are various platforms operating like Paypal that are present in the UK market, such as the fintech firm Revolut.
These platforms are making it easier for most people to access digital currencies. Unlike unfamiliar crypto exchanges, most people have been using these digital financial services for some time. The users don’t need any more learning before using the platform.
At the same time, other traditional companies are also warming up to digital currencies. Several merchants already accept Bitcoin as a payment method. Companies like Mastercard and Facebook also have a positive view of digital currencies.
As crypto becomes more functional, there is the likelihood of its market expanding. Paypal with time will expand to even larger markets, before ultimately offering crypto services globally.
UK crypto regulations
While Paypal enters the UK market, the UK regulatory body has tightened its grip on crypto outfits that do not meet its standards. For example, it banned the US crypto exchange Binance from operating in the country due to failure to meet anti-money laundering provisions. Paypal, however, is committed to working with the regulators in the UK and around the world to offer services in line with the law.