Coinbase users now have the flexibility of withdrawing from their account to PayPal, in a move that will make it much more convenient to send and receive bitcoin and other cryptocurrencies through the platform.
The San Francisco-based wallet and exchange service announced the feature in a blog post, with users now able to withdraw free of charge directly into their PayPal accounts.
Allen Osgood of the product team at Coinbase said the setup would now make it quicker for people to convert bitcoin holdings into cash.
“Starting today, U.S. customers can instantly withdraw Coinbase balances to PayPal, providing even faster access to their funds through one of the world’s easiest and most widely-used payment platforms. These withdrawals are not only fast; they’re free and incur no fees. We work hard to make Coinbase the easiest and most trusted platform around — and now, moving your cryptocurrency to cash is easier and more affordable than ever.”
“PayPal offers U.S. customers an alternative. Before today, you needed an ACH or Federal Wire account to withdraw funds. These traditional finance networks can add up to two business days to a withdrawal. We’re always looking for ways to not only meet the bar set by traditional finance, but raise it. That’s why we rebuilt our integration to ensure that the speed and reliability of PayPal withdrawals does just that.”
Coinbase is one of the world’s leading cryptocurrency exchanges, with over 13 million customers in 190 countries worldwide. Founded in 2012, the firm posted revenues of $1 billion in 2017.
Partnering with PayPal solves a long-standing pain point for some Coinbase users, who were previously constrained to bank transfer withdrawals, often resulting in days of processing delays when withdrawing crypto to cash.
With withdrawals from Coinbase now able to be paid directly to user PayPal accounts, the process for withdrawing is now significantly quicker.
Describing his vision of an open financial system with more flexibility and control for users, Osgood said the PayPal integration would be a boon for Coinbase, and for its customers.
“This integration is a big step forward in realizing that vision, allowing you to smoothly and instantly transfer your funds to cash.”