PayPal introduces bitcoin and ether into direct transfers, expanding options for peer-to-peer payments.
The digital payments giant PayPal has announced that its more than 400 million active users will now be able to make peer-to-peer transfers using bitcoin, ether, and its proprietary stablecoin, PYUSD.
The new feature is enabled through “PayPal links,” customizable one-time links generated directly from the mobile app. Users will be able to share these links via text messages, email, or instant messaging platforms.
The rollout will begin in the United States, with expansion planned to the United Kingdom, Italy, and other international markets by the end of the year.
One of the key aspects of the new system is extended compatibility. Users will not be limited to internal transfers between PayPal and Venmo accounts but will also be able to send cryptocurrencies to compatible external wallets.
The company also clarified that personal transfers made through PayPal or Venmo platforms will not generate 1099-K tax reporting obligations, as they are classified as payments between family and friends.
Previously, the company launched “Pay with Crypto,” a blockchain-based settlement service that allows U.S. businesses to accept payments in more than 100 different cryptocurrencies.
PayPal is not the only centralized player moving in this direction. In June, the cryptocurrency exchange Kraken launched Krak, a payments application that enables users to send and receive digital assets across international borders.
