- By teaming up with Ledger, PayPal is extending its efforts to assist less experienced crypto users, making cryptocurrency purchases a more accessible process.
- Using PayPal via Ledger’s app, U.S. users can conveniently purchase major cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, and Litecoin directly from their linked PayPal accounts.
Ledger SAS, a manufacturer of hardware wallets for cryptocurrencies, recently announced a partnership with PayPal Inc. to simplify buying cryptocurrencies through its Ledger Live platform.
Users in the United States will be able to purchase popular cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, and Litecoin using their directly linked PayPal accounts when using PayPal via Ledger’s application.
A hardware wallet is a device made by Ledger that securely stores the private cryptographic keys used for cryptocurrency transactions. Users who use a hardware wallet can be more confident that their private keys won’t be compromised when they want to carry out transactions like buying, selling, or trading their cryptocurrency. Hardware wallets frequently include additional security features like biometric locks or PIN codes that must be entered in order to authenticate before the private keys can be decrypted.
PayPal is expanding its reach to less crypto-savvy users by making purchasing cryptocurrencies easier through its partnership with Ledger. Buying cryptocurrencies often entails creating an account on a platform such as Coinbase or Kraken, making a purchase, and then transferring the funds to a wallet.
Pascal Gauthier, Ledger Chairman and Chief Executive, said, “Both PayPal and Ledger are focused on creating secure, seamless, and fast transactions no matter where you are in the world.”
By giving users access to the most popular crypto tokens, such as Bitcoin, Ethereum, and Litecoin, PayPal launched its own service in 2020, enabling users to hold, buy, and sell cryptocurrency on its platform. Earlier this week, PayPal announced plans to launch a “Cryptocurrencies Hub,” which would give a select group of users access to even more cryptocurrencies and be directly linked to each user’s PayPal account.
This comes after PayPal USD, or PYUSD, its stablecoin, launched earlier this month. A particular class of cryptocurrency, in this case, the U.S. dollar, maintains a one-to-one parity with another currency. Stablecoins are used in the cryptocurrency industry because they don’t fluctuate in value, making it easier to trade between more volatile currencies. For PYUSD, every token will always be redeemable for one dollar.
It appears that users will convert their crypto assets between various cryptocurrencies and PYUSD through the Cryptocurrencies Hub. Additionally, it will enable users to make purchases using the PayPal platform by using the proceeds from their cryptocurrency transactions.
In addition to expanding how its ecosystem can be used for crypto payments, PayPal is also embracing the hub and stablecoin in conjunction with its partnership with Ledger.
Gauthier said, “Ledger is committed to simplifying the world of crypto, and PayPal is committed to making the movement of money as simple, secure, and affordable as possible. This integration provides greater optionality while giving users peace of mind converting dollars into crypto.”