US users of the Coinbase platform can now purchase cryptocurrency with their PayPal accounts. This new option, while practical, results in considerable costs for users.
Coinbase introduces purchasing via PayPal
The recent arrival of PayPal in the cryptocurrency world opens new doors. The Nasdaq-listed exchange, Coinbase, now allows its customers in the United States to purchase crypto-assets using PayPal.
Reserved for residents of the United States, this new feature means that PayPal-linked debit cards and bank accounts can now be used to purchase cryptocurrency on Coinbase.
“Buying cryptocurrency should be simple and easy. However, transferring money in the traditional world of finance can be anything but easy. Bank transfers can be time-consuming and resource-intensive, and we know you expect faster, more transparent ways to buy cryptocurrency, ” the Coinbase statement read.
The limit for buying cryptocurrency through PayPal is $25,000 per day, and Coinbase charges a pretty hefty fee of 3.99% of the purchase amount. The deposit of US dollars from PayPal to Coinbase also carries high costs of around 2.5%.
These fees are outrageous, especially when you look at what the competition is doing. Coinbase is playing its leading position in the United States and will still manage to convince newcomers to use this new service, despite its cost. The platform enjoys significant visibility among beginners, which has undoubtedly accelerated since its IPO on April 14.
In addition, Coinbase has been allowing its US customers to withdraw funds for sending to PayPal since the end of 2018. An option that was extended to most of Europe two months later.
So while this new buy option is currently only available to US users, Coinbase says more countries will be supported in the coming months.