PayPal’s UK customers can now use its crypto service

Starting this week, PayPal's British customers can now buy, sell, and hold digital currencies like Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

PayPal’s UK customers can now use its crypto service

Starting this week, PayPal's British customers can now buy, sell, and hold digital currencies like Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

Through PayPal's website and mobile app, customers in the United Kingdom can purchase as little as £1 ($1.3) in crypto assets using their bank account, PayPal balance, or debit card.

UK customers will be the second nation to access these services after the fintech giant introduced crypto buying, selling, and holding to US customers last October, on the heels of bitcoin's new high for 2020 and one of the sparks that ignited the subsequent crypto bull market.

Digitalization of money and greater consumer adoption of digital financial services have been accelerated as a result of the pandemic, said PayPal's, Jose Fernandez da Ponte.

The company does not charge its customers for HODLing, but charges for transactions and currency conversions. There is no fee schedule provided by the company, but in the world’s largest economy fees range from 50 cents for purchases under $25 to 1.5% for transactions over $1,000.

Still, it is not yet possible for customers to transfer crypto to another wallet. The cryptocurrency purchased with PayPal can only be spent through the app, though PayPal seems to be working to change this requirement in the United States, like competitor Robinhood.

Cryptocurrencies are growing increasingly unpopular among regulators, and PayPal's launch of a crypto service in the British economy comes amid concerns about that growth.

A British subsidiary of Binance, the world's largest crypto exchange, was banned in June by the FCA as global scrutiny of the Crypto exchange giant strengthened.