PayPal’s bitcoin biz could reach USD 2Bn in revenue by 2023: study

PayPal’s bitcoin biz could reach USD 2Bn in revenue by 2023: study

A recent report published by Don Dolev- an analyst at Mizuho Securities suggested that American online payment platform company- PayPal is likely to earn nearly USD2 billion in terms of revenue from its bitcoin arm by 2023. This year, the firm’s overall revenue is expected to witness a jump of 20%.

In a statement, Dolev said that there has been a substantial boom in engagement due to crypto, with nearly half of PayPal’s crypto users accessing the app daily.

Notably, in October 2020, PayPal claimed that its 346 million active users will be allowed to buy, hold and sell bitcoins and other digital assets simply by using their PayPal accounts. The digital payment company’s crypto service which is powered by ‘Itbit’- a fiat-to-crypto exchange by Paxos, has witnessed an explosion of interest since then.

As per reliable sources, at some point, PayPal was acquiring nearly 70% of all the newly minted bitcoin. A survey conducted by Don Dolvey found that bitcoin traders used the PayPal app three times as much as non-bitcoiners and have a considerably higher amount of cash in their PayPal digital wallets.

Seemingly, Dolvey increased his target price for the PayPal stock from USD 290 to USD 350. The stock closed 0.94% down to USD 239.79 on the NASDAQ Stock Exchange. In the past year, the shares have witnessed a high of USD 249.85 to a low of USD 82.07.

Along similar lines, Lisa Ellis, an analyst working with Moffett Nathanson LLC, forecasted that PayPal’s crypto business will contribute approximately USD 600 million to group revenue in the year 2021.

Ellis stated that in the long term, PayPal’s cryptocurrency efforts will carry significant strategic efforts. She added that the development will help diversify PayPal and Venmo applications into destination apps for various financial services, along with positioning PayPal to shape the long-term role of cryptocurrencies in the wide consumer payment ecosystem.

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