Politics and Business
What’s Next for PayPal after Integrating Cryptocurrencies?
Paypal in Denmark
PayPal is now widely used in Denmark as a payment method for online shopping, with over 7,000 daily active users. Online gambling websites, licensed by Danish Gaming Authority, are legal and provide a wide variety of games. Best of all is that any winnings are tax-free.
In Denmark many Dansk casinos offer PayPal for deposits and withdrawals. It’s popular due to the distance it creates between the casino and your bank details, the added layer of security it provides, and its relatively low fees.
The latest integration of crypto with PayPal is set to increase PayPal’s popularity. Although the crypto integration is currently restricted to US customers, the plan is to integrate the cryptocurrency sector worldwide and make it available in many more countries. When that happens, it’ll be good news for PayPal users, providing an easy way to spend their crypto.
They could ultimately provide complete clearinghouse functionality, making regular payments (defined by the user) for utilities, rent or mortgages, school fees, “daycare fees for your newborn,” and so on.
There are no clear guidelines on whether or not cryptocurrency casinos are legal, as crypto is not regarded as a fiat currency. This means they can bypass some of the legal requirements, at least for now.
A word of caution: while it may not be a requirement for such a casino to be registered and licensed, it’s very much to your advantage if it is. With a registered and licensed casino, you have some recourse to the gambling authority in the event of a dispute.
You’ll find that not all forms of crypto are offered in all crypto casinos, although most will accept Bitcoin and Ethereum. There’s no need to worry though; as the use of cryptocurrency becomes more widespread, it’s inevitable that more coins will be accepted at online casinos.
According to the expert Caroline Grogerssen, an advantage of using PayPal cryptocurrency for your gambling is that it offers a further layer of anonymity, especially if you’re using crypto combined with PayPal. It’s also a secure way of spending your crypto. It is entirely separate from what you’ve budgeted for your other expenses, making it easier for you to control your gambling spend.
Once the first integration of PayPal with cryptocurrency is complete and successful, it makes sense for PayPal to make it available to customers outside the United States and integrate with more coins.
It also makes things simple for merchants wanting to accept crypto payments. They can price goods and services as usual in the fiat currency to which they’re accustomed. Then all they need to do is offer PayPal as a payment method and permit it to handle the currency conversions. This process should be seamless.
We believe that further integrations are coming soon. There is talk of streamlining the checkout process for online shopping by integrating with Honey and using its other shopping tools. Both Honey and PayPal will benefit as they will share data on their customers’ shopping habits and preferences. Most importantly, customer privacy will be protected.
PayPal launched crypto investing in October 2020, but plans are afoot to extend the available investment options to include stock trading. However, it’s not yet clear who PayPal plans to partner with for a trading platform.
Additional financial services
Once the planned integrations are bedded down, we foresee further expansion in the range of financial service offerings. What’s to stop PayPal from offering mortgages or other long-term loans? They already have mechanisms in place for regular payments.
They could ultimately provide complete clearinghouse functionality, making regular payments (defined by the user) for utilities, rent or mortgages, school fees, and so on. All that’s needed is suitable partnership arrangements to leverage the necessary business licenses.
If you’re not already a PayPal user, it looks as though now would be the perfect time to start. It’s straightforward, has an excellent reputation for security, and offers you an easy way to spend your crypto at your favourite online casino.