Paypal noted that its crypto product offering in Luxembourg is designed to provide all prospective users with easy accessibility.
American multinational financial technology company PayPal Holdings Inc (NASDAQ: PYPL) is expanding its reach into the European Union (EU) with the launch of a crypto trading service in Luxembourg. According to an announcement shared on Thursday, the new service will enable users in the country to buy, sell and keep custody of such digital currencies as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
PayPal is primarily a fintech firm but it pivoted into the cryptocurrency space back in 2020 with the introduction of trading in the United States. The success of the pilot launch pushed the company to float the same trading offering in the United Kingdom last year.
The Luxembourg push is its way of pushing into the broader EU region in its global expansion drive. According to the company, customers can acquire crypto for as little as €1.
“Adding Luxembourg is an important step in PayPal’s mission to make digital currencies more accessible. We are committed to continuing to work closely with regulators and policymakers in Luxembourg to meaningfully contribute to shaping the role digital currencies will play in the future of global finance and commerce,” said Jose Fernandez da Ponte, SVP and GM, blockchain, crypto & digital currencies.
The PayPal launch in the EU is coming at a time when the region is just months away from the commencement of the implementation of the Markets in Crypto Assets (MiCA) framework, a comprehensive law that is designed for the digital currency ecosystem. With the bill, crypto service providers will receive broader access to ply their trades in the region as licensed firms in member countries will gain passporting rights across all member states.
PayPal in the EU is currently headquartered in Luxembourg, granting the firm a very soft landing in its efforts to penetrate the region.
PayPal Luxembourg Crypto Offering: Mix of Value and Simplicity
PayPal noted that its crypto product offering in Luxembourg is designed to provide all prospective users with easy accessibility.
PayPal said “to purchase cryptocurrency, eligible customers can log into their PayPal account via the website or their mobile app, navigate to the new crypto tab, and view the four cryptocurrencies available. Customers can choose from pre-determined purchase amounts or enter in their own purchase amount and follow the prompts to purchase the cryptocurrency of their choice. Customers will be able to purchase cryptocurrency using their PayPal balance, linked bank accounts, or EU-issued debit cards. If customers choose to sell cryptocurrency with this new service, funds will be available quickly in their PayPal accounts”.
The company does not charge its customers for its custodial services, however, buying and selling can attract charges.
The PayPal embrace of crypto models a related expansion of related digital currency services by major fintech firms including but not limited to Robinhood Markets Inc (NASDAQ: HOOD), and Revolut.
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