Coinbase users in the US have a new way to spend their money on cryptocurrencies. The popular crypto exchange has announced a new integration with PayPal which will allow its users to purchase Bitcoin, ether and other coins through the payments platform, rather than through credit card, or wire purchases.
The crypto exchange claims the process is quick and seamless, and that users can “instantly fund crypto purchases” in just a few taps. Explaining the reasoning behind the addition, Coinbase claims ACH (direct deposits) and wire transfers can take time and effort, while PayPal offers “a familiar and trusted experience”.
Coinbase users with an existing PayPal account can start using it right away, the company said, adding that there’s no need to add bank accounts or card numbers into Coinbase.
Going forward, once the user selects the desired cryptocurrency, they tap on the payment method, and select PayPal in the “Add a payment method” prompt. After that, similar to what you’d see when making purchases with PayPal on eBay, for example, a PayPal login screen pops up.
Coinbase says it’s important to make sure email addresses used for both PayPal and Coinbase login are the same, otherwise they’ll need to go through a two-factor authentication flow.
Once logged in, users get to choose their preferred card, out of the cards already linked with PayPal. The daily purchasing limit is $25,000.
At the moment, the feature is only available for US users. However, Coinbase said it would enable users from other regions to do the same “in the coming months”.
Cash withdrawals to PayPal are already available in the US, Canada, EU and UK.
Integrating with crypto
The news comes as many traditional financial institutions are starting to integrate cryptocurrencies more and more.
In its most recent earnings call, Visa CEO Al Kelly said the company is moving into crypto in a big way, noting that, “…our focus is on five different opportunities that we see in this space and I would say that this is space that we are leaning into in a very big way and I think are extremely well-positioned.”
JP Morgan has also announced new crypto-related features earlier this week. It said it would let its clients invest in a Bitcoin fund as soon as this summer.
At the time of publishing, Bitcoin’s price was fluctuating around the $54.500 mark.