According to some sources, Coinbase now allows users to withdraw to PayPal accounts. The feature will let some Coinbase customers change their money and deposit it in their PayPal accounts. This will only be available for some currencies, and the availability of it will depend on the country of registration of the customer.
Coinbase and Paypal
Coinbase, one of the most influential USA exchanges has added a new feature. They are offering the possibility of withdrawing fiat money to a PayPal account, a thing that might seem strange. Paypal has been quite hostile to cryptocurrency outlets and exchanges, even going to the extremes of taking measures to not allow their customers to buy cryptocurrencies using their services.
But it seems that business is business, and for customers is just a good way of bonding these two services together in a neat way. For Coinbase customers it will be a new way of withdrawing money in a very convenient way.
However, there are some limits to this. According to the source, these withdrawals will be only active if the customer is registered in the country of origin of the currency. The currencies supported are the following USD, EUR, and GBP. To be able to withdraw their funds to a Paypal account, users would have to complete an ID verification and then they will be authorized to do it.
This also serves to make a case for PayPal deposits to Coinbase. This would be an easy and quick way for people to get onboard cryptocurrencies without having to deal with banks and credit cards. These organizations are already hostile to crypto mostly. This could also mean that PayPal future could be directed to offer cryptocurrency services in the future.
PayPal exclusivity contract with eBay, one of the most important sales sites in the whole internet finishes in 2020. So they might be examining their options to stay afloat by adopting new policies. Onboarding important payment partners like Coinbase could help them maintain their validity in the near future.
However, this is highly unlikely. Paypal is a payment monster with several use cases and important clients worldwide. It seems strange that they would be associated with a cryptocurrency exchange. Despite all this, these are great news for Coinbase, and shows a non-dogmatic approach for helping its customers. This kind of “partnership” will surely be great for users in the long and not so long term.