One way fintechs have set themselves apart from traditional banks is by embracing crypto trading. For some of the biggest names in the sector, the expansion has been a success. Take PayPal. Following in the footsteps of Square's Cash App, the company began allowing US members to buy, hold and sell Bitcoin, Litecoin, Ethereum and Bitcoin cash back in November. It followed that with the option to checkout with crypto in March and brought crypto trading to its subsidiary Venmo the following month. Now, as part of its ongoing push into digital currencies, PayPal is upping the amount of crypto users can buy to $100,000 per week and scrapping the $50,000 annual limit altogether.
The expansion marks a fivefold increase to the service's crypto purchasing limit in less than a year. PayPal says it's also adding to its in-app guides and educational materials on cryptocurrency to help dispel myths around virtual currencies. In January, PayPal made an investment in US-based tech startup Taxbit, which helps consumers and businesses calculate the taxes owed on cryptocurrency holdings.
The payments company has made it clear that its crypto push is about driving engagement. Speaking at JP Morgan's annual tech conference in May, PayPal CFO John Rainey said that people who have purchased crypto use the app twice as much as others. A large part of that is people checking the prices of their holdings. Rainey added that 50 percent of crypto holders use the app daily.