PayPal is launching a new service that will enable its UK customers to buy, hold and sell cryptocurrency.

The service, which starts rolling out this week, will allow customers to choose from four types of cryptocurrencies – Bitcoin, Ethereum, Litecoin and Bitcoin Cash – and marks the first international expansion of PayPal’s cryptocurrency offering outside of the US.

By accessing their PayPal account via the website or the mobile app, customers can view real-time crypto prices, access “educational content” to help answer commonly asked questions, and learn more about cryptocurrencies, including the opportunities and risks.

PayPal suggested its entry could help cryptocurrency to become “more mainstream” in the UK.

“Our global reach, digital payments expertise, and knowledge of consumer and businesses, combined with rigorous security and compliance controls provides us the unique opportunity, and the responsibility, to help people in the UK to explore cryptocurrency,” commented PayPal vice president and general manager, Jose Fernandez da Ponte.

“We are committed to continue working closely with regulators in the UK, and around the world, to offer our support – and meaningfully contribute to shaping the role digital currencies will play in the future of global finance and commerce.”

Commenting on the move, AJ Bell head of investment analysis, Laith Khalaf, said that the significance of PayPal’s entry into the UK market is its potential to process crypto transactions between consumers and businesses.

“This isn’t a service which will be offered at outset in the UK, but it’s already up and running in the US, where PayPal’s crypto ventures only began last October, so we can expect pretty rapid development on this side of the pond too,” Khalaf noted.

He also highlighted that cryptocurrencies are an area the FCA has taken a “keen interest” in, due to the rising popularity of crypto trading, and the potential for high levels of consumer harm from volatile prices.

“PayPal has doffed its cap to regulatory concerns, highlighting the educational content it will host alongside its crypto service, including the risks,” Khalaf said. “That’s to be welcomed, though there are already concerning signs of reckless behaviour by consumers.”

He added: “While many are no doubt using crypto as a bit of harmless fun with small amounts of money they can afford to lose, some consumers are at risk of getting sucked in and spat out by the crypto craze.

“Within the crypto market itself, PayPal’s presence is positive in that it is a high profile, publicly listed company which is already subject to regulatory scrutiny. But overall the crypto craze remains a worry for consumer advocates and regulators, as well as inveterate luddites.”

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