How much are they are taking in fees? Can't tell from the screenshots.
I am watching jimmy fallon.
but they did mention the amounts.
0.00165030btc. was the 21.32 purchase.
0.00154773btc was the 20.00 purchase.
0.00159934btc was the 20.00 purchase.
Didn't know your time zone, so I wasn't sure what the exact BTC price was at the time and thus how much they took out. But I dug into it and apparently:
You can expect to pay 2.3% for transactions below $100, 2% for transactions between $100 and $200, 1.8% for transactions between $200 and $1,000 and 1.5% for transactions above $1,000. There's a minimum fee of $0.50 for transactions below $25.
The page also says there will be some spread between buy and sell prices. Fees will be waived until 2021.
https://techcrunch.com/2020/10/21/paypal-to-let-you-buy-and-sell-cryptocurrencies-in-the-us/So I guess there are no explicit fees right now, just those implied by the spread. The fees, when they do kick in, don't look bad compared to Coinbase, who would charge 1.49% + $2.99 on each of those purchases. But I do wonder how big the spread is.
They can actually put fake BTC in your account if they please however if BTC goes to $20K and everybody wants to cash out they will be on the hook for the difference. Since they aren't some scammy bucket shop Forex broker they would need to deal with regulators. So most likely they hedge their exposure somehow. Even with the futures markets.
Paxos has a state trust charter and Paypal was just granted a conditional BitLicense. I'm pretty sure (although not 100% positive) they need to fully back all digital assets.