PayPal’s integration of Bitcoin has been one of the most interesting developments in the crypto industry this year. Thanks to the company’s sheer user base, the move could bring Bitcoin to many people. An analyst is also predicting that the move could solidify PayPal’s stance as a leader in the financial ecosystem.
Bitcoin to Drive Growth
On Friday, Dan Dolev, an analyst at Mizuho Securities, explained that PayPal’s Bitcoin integration has begun to gain significant traction. Citing an analysis from his investment bank, Dolev told CNBC’s “Fast Money” segment that up to 20 percent of PayPal’s customers had begun using Bitcoin for transactions.
Speaking on the impact that this move could have on PayPal, Dolev explained that Bitcoin integration is more than just a revenue source. With more people using Bitcoin on the service, the leading cryptocurrency could eventually become a significant driver of growth for the payment processor as well.
Eventually, PayPal could ride on the Bitcoin craze to become the “center of financial life” for many people. Dolev added that the same could happen to Square, a payment processor whose Cash App has become a major supporter of Bitcoin for transactions. He added that pro-Bitcoin payment processors would see a point of inflection in 2021, with more people jumping on them to make transactions. The driver for this increase in adoption could be Bitcoin.
PayPal and Bitcoin Win
Dolev’s stance appears to echo PayPal’s objective. Last month, Dan Schulman, the company’s chief executive, told CNBC that they aim to improve cryptocurrencies’ utility by making them more accessible to the public.
In his interview, Schulman pointed out that the coronavirus pandemic has accelerated the move to digital payment options. PayPal is looking to stay at the forefront of this transformation, and they see Bitcoin as a significant way of getting that done.
With 40 to 70 percent of customers reportedly no longer wanting to hold cash, PayPal is looking to simplify the process of buying, saving, and spending digital assets. Thanks to integrating with existing merchants’ payment windows, it can achieve the latter objective relatively easily. This way, businesses, and everyday consumers, will have no problem with using cryptocurrencies. Schulman added:
“One of the things that we allowed is not just making it easy to buy, sell and hold cryptocurrencies, but very importantly, early next year, we’re going to allow cryptocurrencies to be a funding source for any transaction happening on all 28 million of our merchants. And that will significantly bolster the utility of cryptocurrencies.”
Bitcoin integration has also helped PayPal’s stock price. The company launched crypto trading for U.S. customers on November 12, and its stock has surged 25 percent.