Topic: PayPal allows users to withdraw Bitcoin to external wallets (Read 646 times)

Paypal team IMO are team of innovators. They have the foresight to see the future potentials of bitcoin and crypto in general. With huge money trading in crypto, as seen in Coinmarketcap, the are taking position early in the crypto space. I also see Paypal as a company that takes security serious, they take their their time before adopting a system. I think they are wise in taking their time to ensure the safety of their customers. For Paypal to allow users to withdraw Bitcoin to their external wallets, it is a unique positive development in the crypto space.

The news is rolling out for a few days among news channels. It was expected though but wasn't expected that will happen very soon. However this is the right decision, users should have the freedom whether they want to hold assets on a PayPal account or move others' wallets. Bitcoin is decentralized and shouldn't limit to an internal wallet system. Definitely, this is good news for PayPal Bitcoin users.

Unfortunately there are some places that still charge this as a "service fee", but the competition made it a bad thing. If all websites charged this, then all would continue to do it, but when a few big names start doing it for free, it became a forced thing to do for free otherwise everyone would go there.

Like Binance does user to user transfers for free, the network fee is still taken, but if it is another user on the receiving end, you could get the network fee back, or send that to the receiver as well. When even the biggest one which is Binance does this, Paypal sort of had to do it, but still some charge you for it in the name of providing a service.

It is definitely the good way to go, Paypal is a digital company that deals with money, as such crypto is the digital money that millions are using right now. It was high time that they started to accept the withdrawal process as well, I am sure there must have been some legal stuff that they had to deal with, but after they are done, this is the path to go.

It will allow them to make a ton of profit as well but they need to make a lot more marketing about this situation, you can't just do something like this and keep it a secret. I am hearing about the withdrawal here on bitcointalk for the first time, they need to do a lot more marketing and ads about the crypto situation they have.

IMO, I think PayPal has awakened from a deep sleep and started to realize the potential of crypto because how ironic is that move, to start adopting Bitcoin, when PayPal's approach in the very beginning is very rude against its users who transacting Bitcoin using their Paypal account. And now surprisingly base on PayPal's latest move to finally allow its users to withdraw Bitcoin into their external wallets hmmm! sounds interesting, Anyway thats good news for Paypal users and I believe sooner or later it will be implemented in all areas that Paypal has been accepted.   

Revolut should be next...

PayPal linking up better with cryptocurrency is such a huge leap towards better and more widespread cryptocurrency adoption.

Also, PayPal pushing something like this will trigger more business to do the same or to move towards making cryptocurrency more "easy" to use for the global market.

Not too long ago one of the main counter-cryptocurrency statements was the lack of credibility, PayPal made its way and its name, this will help for sure.

However, I would avoid using PayPal. I am not using it for years, I was using it only for small transactions. PayPal is known for their "account limiting" and holding of user's funds.

Many users are using PayPal seamless, but there are some horrible reviews, see on TrustPilot for example.

Recovering your account is nearly impossible unless you have a really good reason and even than it may be not enough.

To open a new PayPal account after your first one has been "limited" is not allowed and will probably be banned too as soon as their system finds out it is the same person.

The implications of this are huge. Executive summary is that it makes BTC <-> fiat conversion way easier for people (cuts out the exchange middleman).

Now you can buy P2P bitcoin with paypal just by sending some money to the person's paypal account (which you could always do BTW), and then that person can simply buy the crypto using the internal PP buying feature, and then withdraw it without needing to have some bitcoin lying around in another wallet.

But I wonder to what extent will PP allow this. After all, wouldn't they start to suspect that it might be money laundering?

The second big thing from this is that the next step they take are quietly removing their banning policy for buying crypto using external websites. Because if you can buy bitcoin and withdraw it all from PP, there is no point in them stopping you from using other platforms to do the same, and it could even be seen as an anti-competitive manouvre. But I'm not sure how many people want to test and see that such a thing is going to happen, because PayPal accounts are still valuable to most people.

Edit: And before I forget, Number 3 is that another big business is consolidationg transactions on L1 blockchain which applies a little extra nudge to the force that is pushing more users to the LN.

Most likely you misread. The weekly maximum limit is $10,000 USD. Per month, that means $40,000 USD.

What you have read is the minimum withdrawal amount per week: 0.001 BTC.

This detail seems to me worthy of attention. It turns out that Paypal can change the conditions at any time. For example, reduce the maximum weekly limit. I don't like any such restrictions on services. And then it turns out a strange thing: the money seems to be yours, but you can't fully dispose of it.

Wait.  What?  So this new 'withdraw' feature lets you only withdraw up to 0.001 BTC per week or 0.004 BTC per month?  Am I reading this right?

If so, I have two questions.  Why would there be this limit?  I have two suspected answers.  They either do not have enough Bitcoin in their wallets to cover the total of their users wallets or they are using this together with the fee terms so that they can draw even more money out of their users pockets.

If you have a weekly limit of $30 at the current price and they retain the difference between their fee and the network fee in case the latter is smaller.  Then if you want to withdraw $100 from your PayPal you need to pay the fee 4 times with their limit.

Nuts!

-
Regards,
PrivacyG

I haven't really bothered to check their rates as I stopped using PayPal 4-5 years ago after couple of my friends got their account banned due buying/selling crypto, but do other exchanges like Kraken or Coinbase offer better rates? I mean, what's the difference, percentage wise?


I am not so sure that's the reason as I read somewhere that approximately 20% of the Paypal users in the United States bought/sold crypto. That number seems a bit too high, but even if its only 1/4 of that its still a big amount as PayPal has ~230 million users there. I think its more about PayPal realizing that majority of people won't withdraw bitcoin to their wallets, so why not offering that option for some good PR.

It is mostly about the fact that at all times there will be a large number of people with coins left in their custody, even with 0 withdrawal fee they won't cash out. In fact this is how many exchanges operate and if everyone were to withdraw they wouldn't be able to fulfill all requests. For example the scam exchange called Yobit has been operating like this.

^Probably from what I have understood, they realized that no one buys BTC from them because it cannot be withdrawn but now you can transfer it to the external wallet. It is good news for their users but as for me, I will never use this Paypal to purchase because it has heavy KYC procedures that will probably have you a problem in the future. But I will not blame Paypal for this, they are trying to be neutral from the government of course but whatever they do they cannot change that decentralized nature of BTC.

It's just like withdraw from an exchange or a bet casino. The deducted fee will contain the network fee for miners and a small portion for the service which is paypal in this case. Most of users think that this upgrade was about to facilitate things for users without asking why it wasn't set from the beginning. the simple answer is that paypal wasn't about do this until found that almost nobody use paypal to purchase or save crypto.

It is like the same with the saying, if you can't beat them, join them. They have seen that the usage of crypto is fast multiplying, so they just swallowed their pride and accept the fact that bitcoin and crypto market will be a good addition to their services. They are now changing their approach as they have seen that crypto users won't use their platform if they can't withdraw their crypto out of their paypal wallets. Also, you won't buy from them if you are already a crypto user because you have better options. Like for example, I am a paypal user but won't buy crypto on their platform. I can directly buy it from exchanges which are offering better deals. It is good that they are changing their services for the benefit of its users.

People who are already in the crypto may not even consider this but as mentioned PayPal has vast user base compared to the exchanges so people may try to buy bitcoin out of curiosity and also PayPal is not going to just let the people to get into cryptocurrencies without any business intention, probably we may see more changes which may eventually help the people to use cryptocurrency for buying. Once PayPal never accepted cryptocurrency later they let the people to buy it but didn't let them to withdraw maybe in future everything will change so this is a sign that cryptocurrency is here to stay.

Exactly the same story with Wikipedia, Wikipedia deleted their Bitcoin's page in 2010, and started accepting donations in Bitcoin in  2014 , what do we call this..? Irony of life   .

Anyways, paypal deciding to come out from the hole and start allowing thier users to send and receive crypto through their platform is a welcome development, though I highly doubt alot of people are going to use it, but it's still great they made the feature available for those who really need it.

I totally agree with you, this is something that's very common with all centralized exchanges and custodial wallets.
As long as PayPal is going to be offering a custodial crypto wallet to their users, I am 100 percent certain they are going to be keeping parts of the fees they charge their customers for network transaction fee.

It has something to do with being convenient ^{[for the most part (unfortunately, even some of the veteran users do it from time to time]}.

As of this writing, these options aren't available for Salvadorans.
^{- It's worth mentioning that the same thing applies to Hawaii [a US state]!}

Even if it's higher, PayPal users will still overpay for each of those transactions ^{[unfortunately]}... They'll estimate and charge a fee for 1 input and output Tx as if they're going to send it in that manner, but in reality, they're just going to batch/combine a lot of them into a single Tx and that leads to fewer expenses ^{[for them]} while they gain ridiculous amounts from processing those transactions.

I wouldn’t think so really. Giving the chance to withdraw your crypto from Paypal is a feature that most novel crypto buyers on Paypal will likely not consider (sending to others perhaps more), and that probably benefits most those profiles of people that started off rather clueless, but have evolved to understand the value and virtues (and also the responsibility) of self-custody and crypto usage. When compared to the top Exchanges, Paypal looses by a thrashing currently, and is more like a very limited version at best.

Having said that, Paypal’s virtue is to make it simple for its vast user base to acquire some crypto (delimited geographically at it may currently be), and that is where its fortitude resides. Normally, the people who will use the service will be rather novel, and that is the core target I figure. An Exchange will have a certain base of similar customers, but also a segment of much more allegedly savy people, that use them for their trading with products that are more complex to follow through.

My doubt is whether Paypal will stop there in terms of functionality, or whether it will gradually evolve to incorporate lightweight products and features that we typically see in Exchanges. To be seen …

Am I really seeing this? Sure this will be a next big move towards adoption. If I am not wrong PayPal helped bitcoin from the previous bearish trend to recover and reach great heights now it will really let the users to withdraw bitcoin to the external wallet may kill the business of exchanges but surely bring a lot more new people into this.