Reuters reported that PayPal Holdings Inc will start permitting U.S. consumers to use their cryptocurrency holdings to pay at millions of its online merchants globally.  This is considered to be a significant move that will make it possible for the use of digital assets in day to day commerce.

Therefore, now all the customers who hold Bitcoin, Ether, Bitcoin Cash and Litecoin in PayPal digital wallets can now spend their holdings by converting them into fiat currencies at checkouts to make their purchases at outlets that accept them.

This service is something that PayPal has been working on from late last year and now the service will be soon made available in nearly 29 million merchants through the forthcoming months.

Dan Schulman, President and CEO has reportedly stated per Reuters ahead of a formal announcement that “This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside your PayPal wallet.”

PayPal users will now be able to buy, sell and hold cryptocurrencies, which means LTC is in the list and is a reason for the LTC community to be excited about.  PayPal has already triggered a rally in virtual coin prices.

Important to note that this news is coming at a point in time when Tesla Inc stated that they would start accepting bitcoin payments for their cars. In PayPal transactions the end merchants will be receiving the payments in fiat currency, but with Tesla they will be holding the bitcoin used as a payment.

Thus, cryptocurrency is gaining traction in the mainstream and very soon it is expected to become a widely used method of payment; however, the delay any will be due to its inherent volatility.

PayPal has taken this decision of fiat currency for merchants because merchants will not be willing to deal with the volatility risk.

Schulman also stated, “We think it is a transitional point where cryptocurrencies move from being predominantly an asset class that you buy, hold and or sell to now becoming a legitimate funding source to make transactions in the real world at millions of merchants.”

The good news seems to be that the company will not charge transaction fee to checkout with crypto.  Also, in the payment process only type of coin can be used for each purchase.  Users cannot choose to pay with a mix of tokens.  If they are paying in LTC the entire payment should be made with LTC.