PayPal has launched its crypto service in the U.K. Starting next week, the company will allow its users in the country to buy, sell, and hold cryptocurrencies.
Following the introduction of its crypto business in the United States last October, PayPal has extended into the United Kingdom for the first time. PayPal customers in the United Kingdom, like those in the United States, will be able to exchange and hold four cryptocurrencies: Bitcoin (BTC), ether (ETH), litecoin (LTC), and bitcoin cash (BCH).
For its U.K. expansion, the company will continue to work with Paxos as its crypto partner. Paxos serves as both a market maker and a custody provider. PayPal does not presently accept withdrawals to external wallets but is looking into it, according to a company spokeswoman, who declined to specify a launch date.
PayPal users can begin investing in cryptocurrency with as low as £1 or $1, but the maximum investment amount is limited. According to the spokesman, customers in the United Kingdom will be unable to purchase cryptocurrency valued more than £15,000 every week. They stated that the maximum amount for purchases made over a 12-month period is £35,000. However, in the United States, the weekly cryptocurrency buy cap is $100,000.
PayPal users in the United States can also shop with cryptocurrency, though not directly. Users technically sell their crypto holdings and pay PayPal merchants in fiat, but this is all done in the background. PayPal’s Venmo payments programme also lets users buy, sell, and store cryptocurrency in the United States. Venmo is not available in the United Kingdom.
It is unknown how much money PayPal makes from its crypto business or what volumes of cryptocurrency it trades. Unlike Square and Robinhood, PayPal does not provide financial information about its crypto business.
PayPal is participating in the crypto investment area in addition to providing a crypto trading service. TaxBit, TRM Labs, and Talos, among others, have received funding from the company’s venture capital section. PayPal also purchased the crypto security startup Curv earlier this year.