PayPal has launched a new dedicated business unit to spearhead the payment giant’s crypto ambitions. Speaking during PayPal’s earnings call on Wednesday, CEO Daniel Schulman affirmed that current financial frameworks are outdated and that his firm will be channeling a lot of resources into blockchain and digital currencies. He remarked:
We all know the current financial system is antiquated, and we can envision a future where transactions are completed in seconds, not days; a future where transactions should be less expensive to complete; and a future that enables all people to be part of the digital economy, not just the affluent. We are significantly investing in our new crypto, blockchain, and digital currencies business unit in order to help shape this more inclusive future.
A source familiar with the matter described PayPal’s plan as “going all in.”
In Q4 of 2020, PayPal announced that it was going to launch a range of crypto payment services this year. The new business unit will likely be tasked with the responsibility of making this happen. Meanwhile, Schulman revealed that customers will be able to use crypto to pay for goods and services at 29 million merchant locations. This feature is expected to take effect by the end of Q1 2021, after which the payment giant will launch its first international market and a Venmo integration with crypto. Schulman further said:
[This is] just the beginning of an extensive roadmap around crypto, blockchain, and digital currencies.
While PayPal is dropping details of its upcoming crypto offering, Visa, another payment processing giant, launched an initiative to support the purchase of digital assets from traditional banks yesterday.