Paypal introduced cryptocurrency to its platform last year in what turned out to be a major headliner in the world of crypto. Analysts predicted that the decision of the world\u2019s largest payment processor to enable its users to buy and hold cryptocurrencies will provide the turning point required for crypto to go mainstream.<\/p>\n
By launching this service, Paypal expected to witness an increase in revenue similar to its competitor, Cash App who recorded $1.63 billion in bitcoin revenue. Months after, the script is playing out. \u00a0<\/p>\n
A survey conducted by Mizuho Securities USA showed that about one-fifth of Paypal\u2019s 346 million active users had already traded bitcoin before December 1, 2020, when the survey was released while about 65% were ready to make purchases at the 28 million merchants using bitcoin.<\/p>\n
On the stock market, PayPal (PYPL) has performed well since enabling bitcoin transactions. It has experienced a 20% surge in the last quarter and is expected to continue in a similar trajectory. Mizuho expects the stock price to reach about $350 in the coming months.<\/p>\n
Activity and transaction volume on PayPal have also attained unprecedented levels. Statistics show that half of the bitcoin holders on Paypal use the app every day and about three times more than non-holders. This increased utility and activity by holders perhaps accounts for the record $242 million bitcoin trading volume witnessed by Paypal on Monday.<\/p>\n
The massive growth experienced in the short period shows that Paypal is closely following the path of Square\u2019s Cash App. Dan Dolev, a Fintech research analyst at Mizuho estimates that PayPal\u2019s cryptocurrency services could fetch it up to $600 million in revenue this year and may go as high as $2 billion in 2023.<\/p>\n
Lisa Ann, an analyst at the independent research company, MoffetNathanson also expressed optimism in a note written to clients. A part of it reads:<\/p>\n