PayPal to expand crypto trading to the UK, plans to embrace smart contracts and DeFi

The UK is the next destination for PayPal’s crypto trading according to CEO Dan Schulman.

The payment platform also seeks to add smart contracts and DeFi to its platform.

In 2020, PayPal secured a conditional BitLicense from the New York State Department of Financial Services to offer crypto services in New York in partnership with a cryptocurrency firm Paxos. The electronic commerce company enabled US users to buy, sell or hold cryptocurrency on its platform while it rolls out to other countries. 

In its second-quarter report, PayPal has disclosed plans to expand its trading services to the UK following its incredible performance in the period under review. 

This was confirmed by PayPal CEO Dan Schulman:

Yeah, well, we continue to be pleased with the momentum we’re seeing on crypto. […] We’re going to launch, hopefully, maybe even next month in the U.K., and open up trading there.

PayPal is working to increase its ability to integrate into its Automated Clearing House (ACH) for faster payment. ACH is an electronic service that helps merchants obtain payment from clients by debiting their checking or saving accounts directly. 

Schulman mentioned that incremental functionality is being added to crypto trading. As it stands, the crypto purchasing limit has been increased to $100,000 per week. He further mentioned that crypto adoption and trading on Venmo was very positive as “Pay with Venmo” recorded revenue growth of 183 percent year over year. In April this year, Venmo introduced crypto trading to its 70 million users.

PayPal exploring possibilities to add DeFi to its platform

PayPal also has plans for other financial products as they explore possibilities to add smart contracts and DeFi to the platform. This is in line with a leaked video at the EthCC conference in Paris which revealed that Uniswap is in talks with many fintech platforms including PayPal to integrate DeFi. 

According to Schulman, this is a possibility. 

How can we use smart contracts more efficiently? How can we digitize assets and open those up to consumers that may not have had access to them before? There are some interesting DeFi applications as well. And so we are working hard.

The effort to catch up with the evolving financial industry will offset the gaps in the traditional infrastructures. 

According to Schuman, the financial infrastructure is inefficient, and so there is the need to embrace modernization. This is to overcome expensive and slow transactions. He believes that there will be a considerable decline in the use of cash in the next ten years. 

All form factors of payment will collapse into the mobile phone. Credit cards as a form factor will go away, and you will use your phone because a phone can add much more value than just tapping your credit card.

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