PayPal has announced that its customers in the US can now spend a greater amount of cryptocurrencies on their purchases. In a press release published on Thursday, the payments giant said it is increasing the weekly limit on purchases made with crypto to $100,000, from the previously set $20,000 mark. “These changes will enable our customers to have more choice and flexibility in purchasing cryptocurrency on our platform,” the company stated.
PayPal Increases Weekly Purchase Limit for Crypto
In addition to increasing the weekly purchase limit, PayPal has also scrapped its $50,000 annual limit on crypto spending.
The company entered the cryptocurrency domain in October 2020, with a new service that allowed users in the United States to buy, hold and sell digital assets directly through their PayPal accounts. At the time, PayPal’s president and CEO, Dan Schulman noted that the company wants to work with regulators and central banks “to meaningfully contribute to shaping the role that digital currencies will play in the future of global finance and commerce.”
Before launching its service, PayPal had decided on a $10,000 weekly limit for customers, which was upgraded to $20,000. Later on, users were also given the option to buy Bitcoin, Ether, Litecoin, and Bitcoin Cash on the company’s mobile app, Venmo. Venmo has a minimum spending requirement of $1 and allows users to share their purchases with their contacts through its social feed.
PayPal Expands on Existing Crypto Offerings
Since the launch of its first crypto-related offerings in 2020, PayPal has released more upgrades and features for them. In March, the platform introduced a “Checkout with Crypto” feature that enabled users to convert their cryptocurrency holdings to fiat money at the time of checkout. Shortly after, it joined hands with Coinbase in April, to allow the exchange’s users to buy crypto assets using their PayPal accounts.
PayPal has been bullish about the addition of cryptocurrencies to its platform from the start. Before the launch of Venmo in April, Dan Schulman said the platform’s monthly crypto commerce could touch $200 million in a few months.
The global payments firm has also made investments in other blockchain businesses like Blockchain Capital and crypto compliance and risk management platform TRM Labs.
With nearly 392 million active users in the first quarter of this year, PayPal has real potential to increase the adoption of crypto payments, while helping people overcome crypto hesitancy.