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PayPal says that by launching the new service to USD on ramp, it hopes to simplify customer interactions with cryptocurrencies.
Payments giant PayPal Holdings Inc (NASDAQ: PYPL) is expanding services offered as part of its expansion into the crypto sector. Following its launch of an on-ramp function that lets customers buy crypto, PayPal has launched an off-ramp service so that users can easily sell the crypto for USD.
The company announced this in a news release published on Monday. The statement noted that PayPal is simplifying the functions of services like dApps, NFT marketplaces, and wallets, and how they help users buy and sell crypto. The company explained that Web3 merchants who use their services can leverage PayPal’s security features to manage fraud and handle disputes and chargebacks.
“PayPal previously launched On Ramps to enable US consumers to directly buy crypto with PayPal through integrations with Metamask and Ledger – with more coming soon. By adding Off Ramps, crypto wallet users in the US can convert their crypto to USD directly from their wallets into their PayPal balance so they can shop, send, save, or transfer to their bank or debit card,” wrote the company.
However, the new feature will only be available in the US until further notice.
Last month, PayPal and Ledger announced an integration for customers to buy crypto assets through the Ledger Live app via verified PayPal accounts. Supported assets include Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). Ledger now offers PayPal customers its user-friendly interface, easily understandable by new and experienced crypto users. The announcement confirmed PayPal as one of Ledger’s on-ramp partners, including Coinify, Moonpay, and Wyre.
In early August, PayPal launched its PayPal USD (PYUSD) stablecoin, months after an initial announcement in January. The asset is issued by the Paxos Trust Company according to regulations set by the New York State Department of Financial Services (NYDFS). PayPal assured that each PYUSD coin is fully backed by actual USD. It also said Paxos will publish a monthly report containing details of PYUSD reserves from September 2023. In addition, there will be a “third-party attestation” issued by an independent accounting firm.
A week after launching the PYUSD, PayPal unveiled a Cryptocurrencies Hub to increase user interactions with supported crypto assets. Among other functions, the Cryptocurrencies Hub will enable easy conversions between PYUSD and these assets. Eligibility requires users to hold a personal PayPal account and also provide several pieces of identifying information. These include a full name, date of birth, physical address, and taxpayer identification number.
Away from its crypto efforts, PayPal has struggled otherwise. In February, the company announced it would lay off 2,000 full-time employees, about 7% of its staff count. According to CEO Dan Schulman in an employee letter, the company is facing problems caused by multiple macroeconomic factors. In response, PYPL rose 2%.
In April, Coinspeaker reported that PayPal reduced Schulman’s cash remuneration by 32%. According to an official company filing with the SEC, Schulman was paid $22 million last year, lower than the $32 million he received previously. The company cut the CEO’s pay after PayPal missed critical financial targets.