PayPal’s head of cryptocurrencies, Jose Fernandez da Ponte, announced on Wednesday at Coindesk’s Consensus Conference that the company will soon allow customers to move Bitcoin and other cryptos out of PayPal.
PayPal intends to provide support for third-party wallet transfers, allowing customers to transfer cryptocurrency from PayPal to private wallets.
Users of Venmo will be able to withdraw Bitcoin from the app and transmit it to other wallets or services in the same way. Users of Venmo and PayPal will be able to transmit cryptocurrency to one another in the near future.
Ponte did not provide any more information on when PayPal and Venmo intend to implement this function.
The move is most likely the result of stronger demand for PayPal’s crypto services than it had anticipated. PayPal’s CEO, Dan Schulman, indicated in a late April interview with TIME Magazine that demand for digital assets on the network had far surpassed the company’s expectations.
The firm posted better-than-expected first-quarter results, with adjusted earnings of $1.22 billion, exceeding analysts’ average forecast of $1.01 billion. PayPal’s crypto buying and selling business was included in the second batch of findings. Customers who bought cryptocurrency through the site used PayPal twice as much as they did before they could buy cryptocurrency, according to the company.
“Demand on the crypto side has been multiple-fold to what we initially expected. There’s a lot of excitement,” said Schulman.
PayPal has been considering distributed ledger technology (DLT) and cryptocurrencies for years, but they were too unpredictable and hazardous to integrate into their platform, according to Schulman.
“We’ve been looking at digital forms of currency and DLT for six years or so. But I thought it was early, and I thought the cryptocurrencies at the time were much more assets than they were currency. They were too volatile to be a viable currency,” said Schulman.
Cryptocurrency may become a more permanent fixture within the PayPal and Venmo systems now that the firm has incorporated it and found such strong demand.