Coinimal is an online exchange which supports Bitcoin, Ethereum and NXT trading for several fiat currencies. Previously, Neteller and SEPA (Single Euro Payments Area) bank transfers were the site’s only payout options. PayPal is now added to the payout provider list. Customer preference for this addition was strong, the company reports. “This option was implemented because of popular demand,” a Coinimal spokesperson says.
Aside from PayPal, Coinimal also added Sofortüberweisung, giropay, and EPS (E-Payment Standard) to serve more customers around the world. The company was started during 2014 in Austria by Eric Demuth, Paul Klanschek, and Christian Trummer. They report that the idea of Coinimal came to them after they “personally experienced how hard it was to acquire Bitcoin in the EU.” Coinimal currently offers a EUR 5 reward for users who “verify” an account with government identity papers. The company limits how much unverified accounts can buy or sell.
Traders using the new PayPal payout option will still be charged PayPal’s “commercial transfer” fee, the company notes. And what of all the Bitcoin-PayPal news in the past that turned out to either be cancelled or overhyped? “We worked on PayPal with this, so there’s no reason to believe this option will be discontinued,” a Coinimal spokesperson said on Reddit.
PayPal-related Bitcoin rumors have indeed caused huge buzz in the past. For example, merchants can opt-in to accepting Bitcoin as payment through their PayPal accounts, but there are major caveats. PayPal’s policies prohibit those without a sanctioned “business account” to pay for or receive payment for cryptocoins, and the merchants must only sell “digital goods.” But Coinimal falls into that category.
The company also owns a cryptocoin ATM in Vienna, Austria, which sells both Bitcoin and NXT at a 4% markup. Vienna is no stranger to Bitcoin ATMs, either; CoinATMRadar shows that the city boasts dozens.
Coinimal is one of the many companies working to serve the pinch point of transferring fiat currencies into cryptcoins, and vice versa. What some call “closing the loop” — that is, reaching a point in which using fiat is no longer necessary — has not yet been reached. For this reason, traders and entrepreneurs compete daily to figure out new solutions for trade.
For the traders selling their cryptocoins to Coinimal, the exchange likely represents a way to use their bank, Neteller, or PayPal account to pay fiat-only expenses. But as more retailers begin to accept Bitcoin, the number of people converting cryptocoins to fiat may decrease. Announcements of large companies accepting bitcoins usually draw much attention, but smaller retailers come around too–albeit to much less fanfare.
When asked if they plan to support more cryptocoins in the future via a Shapeshift-like tool, a Coinimal spokesperson said that the company didn’t want to “spoil” anything with such an announcement. The market cap of the world’s hundreds of cryptocoins, to date, is nearly $4.5 billion USD.
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Images courtesy of Redmemes.