Does PayPal Accept Bitcoin?

Does PayPal Accept Bitcoin?

Cryptocurrencies such as Bitcoin, Ethereum and Litecoin have seen tremendous growth in popularity over the years and more businesses are beginning to adopt and integrate these digital currencies. Many of the major brands across the world have accepted it as a form of payment for their goods and services, such as Subway, Microsoft, and PayPal.

PayPal does accept Bitcoin as payment through integrations and payment processors, such as Braintree, Coinbase, and BitPay. Users of these payment processors are able to sell their Bitcoin and cash out to their PayPal accounts.

Currently, PayPal does not support Bitcoin as a currency in your PayPal balance. There are various reasons as to why they do not provide support at this time, with one of the main reasons being the volatility of Bitcoin. For example, if you are a merchant that accepts Bitcoin and you sell a product. The next day, the value of Bitcoin may fluctuate which means that you could have made a loss on that transaction.

Can Merchants Accept Bitcoin Through PayPal?

For merchants that use PayPal and accept or would like to accept Bitcoin as payment for goods and services, PayPal is able to be integrated with Braintree, which is a payment processor for various payment methods. PayPal had acquired Braintree in 2013 for 800 million dollars. The numerous payment methods supported by Braintree include credit cards, debit cards, Venmo, Bitcoin, and more. All of these payment solutions fit into a single integration.

At this point in time, PayPal only acts as the intermediary and does not support Bitcoin transactions itself. If Bitcoin becomes more stable and proves to be a better currency, then there may be the possibility of PayPal supporting it in the future. The costs of the transactions are to be decided by the payment processor and of course, the merchant.

Can I Buy Bitcoin with PayPal?

Buying Bitcoin has become much easier and convenient over the years, especially with mobile wallets. However, is it possible to buy Bitcoin with the funds in your PayPal account?

Currently, there is no way of using your PayPal funds to purchase Bitcoin directly due to various reasons. One possible reason for this is that people could use PayPal’s support system to chargeback their cryptocurrency purchases. This could be considered a fraudulent way to purchase Bitcoin and obviously would not encouraged at all.

However, although there isn’t a way to directly purchase Bitcoin with your PayPal funds, there are other legitimate ways of obtaining cryptocurrency with PayPal. Major cryptocurrency exchanges do not accept PayPal as a payment method, so an alternative method is to trade directly with Bitcoin buyers and sellers. There are websites that facilitate peer-to-peer transactions to help you buy and sell Bitcoins such as Local Bitcoins.

Although PayPal has partnered up with businesses such as Coinbase and BitPay, you can only sell your Bitcoin and have the fiat funds deposited into your PayPal account.

About the Author

Sam Deering

Sam Deering

Sam is a blockchain and cryptocurrency enthusiast, crypto trader, web developer, entrepreneur and also the founder of Crypto News Australia.