According to CoinGecko data, Paypal cryptocurrency partner Paxos saw rapid growth in trading volume after joining forces with the California based Payments giant to support crypto purchases.
Paxos’s itBit exchange which will power the new service for PayPal, enables customers to buy, sell, and hold a range of cryptocurrencies such as Bitcoin, Litecoin, and Ethereum.
Since Paypal announced plans to enter the crypto market in October, the itBit exchange’s trading volume has been rising. Data shows that the volume increased a massive 500% to $26.57M on Nov. 13 from about $4.41M a month ago.
Paxos is keen to work with other platforms and build support for digital currencies. Using its API-based solution, the crypto brokerage firm creates the infrastructure for technical and regulatory simplicity, thus facilitating access to the digital economy.
PayPal Steps Up to Meet Rising Crypto Demand
PayPal is well-positioned to capitalize on the burgeoning crypto payments market, especially in the U.S.
As crypto continues to evolve and offer an alternative to fiat money, more people globally have taken an interest in the offerings. As per a Finder Survey, the number of U.S. adults owning crypto doubled in the past year, reaching an estimated 36.5 million users.
Furthermore, more institutional investors continue to show interest in crypto, with the latest player to express interest in BTC investment being Skybridge Capital, a $3.6 billion fund.
PayPal’s crypto support could help the company diversify its payment offerings and eventually grow its user base by bringing this part of its service to global markets.
As crypto gains global exposure in the payments realm, PayPal, a major player in that space, has an excellent opportunity to appeal to a previously untapped customer base. The payments firm can also work to build relationships with global regulators and induce increased adoption of crypto payments.
Will Paypal’s New Crypto Service Match Square Inc.?
Many crypto enthusiasts will now wait to see if PayPal’s new crypto service can gain traction and help the company get a competitive edge in the payments space.
Particularly, Paypal needs to ensure that it’s on par with competitor Square. Inc, which launched a similar crypto service that garnered tremendous success, helping it reach $1.92 billion in net profits in Q2 of 2020.
So far, PayPal seems to be on the right track after dropping the waitlist to buy, hold, and sell crypto in the U.S. this past week. Additionally, the company increased its weekly crypto purchase limit from $10,000 per week to $20,000 per week to meet mounting initial demand from its customers.