An analyst from the Mizuho financial group believes that PayPal could significantly increase its turnover thanks to its cryptocurrency services, which are very successful.
PayPal faces huge demand for its Bitcoin and crypto services
Dan Dolev’s prediction was reported by the Market Watch media outlet. Dolev has revised its PayPal share price prediction (PYPL) upward, due to demand for its Bitcoin-related services. He explains as follows: “There is a huge increase in user engagement, thanks to cryptocurrencies.”
It seems that PayPal users who hold Bitcoin and cryptocurrency open the app at least once a day. In addition, they manage funds that are on average larger than users who do not hold cryptocurrencies.
The crypto services of the payments giant have indeed experienced an unexpected influx of users, with an exchange volume that exceeded 242 million dollars in 24 hours a few days ago. And this while the services are for the moment reserved for users located in the United States, and that cryptocurrency payments are not yet available.
PayPal’s turnover boosted by cryptocurrencies?
Hence this conclusion from Dan Dolev: PayPal could generate $2 billion in revenue from Bitcoin by 2023. This would correspond to 10% of its total revenue over the same period. Moffett Nathanson analyst Lisa Ellis is also bullish, estimating that PayPal will generate $600 million in revenue from cryptocurrencies as early as 2021.
The online payments giant is in any case very well positioned to become a major player in the market in the years to come. The company is also gradually consolidating its position: we learned at the beginning of the month that PayPal had thus funded a startup specializing in the taxation of cryptocurrencies.
It remains to be seen whether the payment giant will make more moves to expand its operations in the coming months. However there are speculations that PayPal could finance a crypto exchange that could launch before the end of the year.