During yesterday’s earnings call, PayPal’s President and CEO Dan Schulman spoke about the strong response to the initial rollout of PayPal’s cryptocurrency offering. It also appears that once digital currencies in the PayPal wallet can be used for retail payments, the cost savings won’t be passed on to merchants. Not initially anyway, based on brief comments. The full transcript is below.
He said the waiting list for users to sign up to be able to buy and sell cryptocurrencies is two to three times what was expected, and people who bought crypto check their wallets several times a day. Given the demand already seen after rolling out to 10% of its U.S. base, it is increasing its daily limit from $10,000 to $15,000 per day.
Heath Terry of Goldman Sachs asked how digital currencies would impact payment costs and whether it would be similar to ACH or debit funding. This is relevant for users paying retail merchants using cryptocurrencies. Schulman only partially answered, but it would seem the cost reductions will not be passed on.
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