U.S. customers of the now-publicly listed Coinbase are now allowed to purchase cryptocurrencies through payments giant PayPal.
Because of this, customers can now use bank accounts, and debit cards linked into their PayPal accounts to buy digital currencies on the crypto exchange and load the funds to their Coinbase USD wallet.
According to the company, the additional payment option will make buying crypto assets simpler and faster.
Coinbase, however, was quick to clarify that customers cannot use e-checks and credit cards linked to PayPal for their purchases.
Daily purchase of cryptocurrency through PayPal is capped at $25,000, while Coinbase will charge a fee of 3.99%. Additionally, the exchange platform charges 2.5% fees for customers that deposit USD from PayPal to Coinbase.
How does this work
The development involves a rather simple process that, when followed correctly, will make a customer able to use the payment option.
Provided that customers signed up with the same email for PayPal and Coinbase, they can start using the service by linking these two accounts and looking for the “add a payment method” option when buying crypto assets through the Coinbase app.
While initially, this option has only been made available for customers in the U.S., there are plans to support more countries in the coming months. As a matter of fact, Coinbase has already made cash withdrawals to PayPal available in U.K., European Union, Canada, and the U.S.
Another mainstream acceptance for crypto
The growing mainstream acceptance of cryptocurrencies was once again boosted by the partnership between Coinbase and PayPal.
The payments giant has started to allow its users to purchase Bitcoin (BTC), Ethereum (ETH), Litecoin, and Bitcoin Cash on its own platform last year and is gradually increasing its service.
Earlier this month, PayPal has launched the “checkout with crypto service” that allowed customers to spend their digital currencies at more than 26 million merchants nationwide.
Image courtesy of Cointelegraph News/YouTube