Through this partnership, users gain access to a hassle-free method to buy cryptocurrencies using their debit cards and bank accounts linked to PayPal. Coinbase believes that the process of acquiring crypto should be as straightforward and simple as making a regular purchase. However, the process can sometimes be slowed down by conventional financial mechanisms such as wire transfers, which can sometimes be time-consuming.
By collaborating, the two entities aim to provide users with a familiar and reliable transaction experience, as PayPal has a proven track record and has invested in the necessary tools to ensure security, transparency, and performance across its services.
Germany and UK-based users who already have a PayPal account can immediately start transacting on Coinbase. It’s worth noting that they don’t need to input their bank accounts or card numbers directly to Coinbase, as PayPal manages their financial information.
To fund their crypto purchases with PayPal, users need to first select the crypto they wish to buy, click on the payment method then ‘Add a payment method’ to select PayPal. This redirects them to the PayPal login page, and after a successful login, they can select or add a debit card or bank account linked to PayPal.
Apart from ease of use, one of the most important benefits for Coinbase users is industry-leading security, as both PayPal and Coinbase offer reliable security features, including encryption and fraud monitoring. In the following months, Coinbase aims to make this new feature available to other countries in the EU. It’s also worth noting that, at the time of writing, cash withdrawals to PayPal are available in the US, the UK, Canada, and across the EU.
In August 2023, Coinbase secured regulatory approval from the National Futures Association to offer access to eligible US customers to crypto futures. This means that Coinbase is on track to become the first crypto-native company to directly offer traditional spot crypto trading together with regulated and leveraged crypto futures, on an integrated trading solution for its verified customers.
Coinbase filed its application to register an FCM with the NFA in September 2021 with the goal of attaining compliance with all the necessary regulations while making sure that its business model meets the CFTC’s requirements for customer protection. According to information provided by Coinbase, the global crypto derivatives market represents approximately 75% of crypto trading volume worldwide, therefore being an important trader access point.
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