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Evercore Backs PayPal’s Entry to Crypto, Expects Business Boost

UTC by Bhushan Akolkar · 3 min read
Evercore Backs PayPal’s Entry to Crypto, Expects Business Boost
Photo: Depositphotos

Evercore noted that PayPal’s crypto offering will “substantially” boost its consumer engagement as well as transaction margin. PayPal has already witnessed massive demand for its crypto services within weeks of going live.

PayPal’s (NASDAQ: PYPL) entry into the crypto space has been one of the biggest announcements in 2020. Several market analysts have called this move a gamechanger for the crypto market as well as the financial industry. Advisory firm Evercore recently called PayPal Holdings Inc as its top financial stocks.

It has also backed PayPal’s decision to offer crypto trading services to its users. Evercore notes that PayPal’s recent entry into crypto could be good for the company’s profitability. On Monday, December 14, Evercore ISI research analyst David Togut said that PayPal’s entry into crypto could “substantially increase both customer engagement and transaction margin.”

He also noted that the QR Codes will help the company to offer services across multiple different payment channels. Togut further added that the expansion of e-commerce will majorly help PayPal as it has assumed a “superior market position as a digital and mobile merchant acquirer with a strong mobile wallet”.

Evercore notes that PayPal’s crypto offering will “substantially” boost its consumer engagement as well as transaction margin. Interestingly, the second on the list of Evercore’s top financial companies is Square Inc. Through the popular Cash App, Square Inc has been already offering Bitcoin trading services to users. Moreover, back in October 2020, Square Inc themselves purchased BTC worth $50 million.

PayPal’s Crypto Entry with Bitcoin Services and PYPL Stock

As per its earlier announcement, PayPal will allow users to its users to make merchant payments in BTC by 2021. A recent poll by Mizuho Securities USA shows that 65% of PayPal users are ready to use Bitcoin for shopping.

Speaking about the Bitcoin shopping facility, PayPal CEO Dan Schulman said:

“It bolsters the utility of that underlying cryptocurrency, and you can do more with it than just ride the ups and downs of it. In effect, you’re taking that as an instrument that can conduct commerce at our 28 million merchants”.

PYPL stock has already surged 100% year-to-date as of Monday’s closing. Ever since November 12, when PayPal went live with its crypto trading services, PYPL stock has surged 70% till now. Last month, crypto investment firm Pantera Capital published a report that PayPal’s crypto services have gained massive traction in a very early stage. the firm also noted that PayPal has snatched up nearly 70% of all Bitcoins in circulation. The crypto investment company noted:

“When PayPal went live, volume started exploding. The increase in itBit volume implies that within four weeks of going live, PayPal is already buying almost 70% of the new supply of bitcoins.”

Undoubtedly, the entry of big giants like PayPal has been a big boost in the adoption of Bitcoin and crypto. Things will escalate further next year in 2021 as PayPal expands its services worldwide.

Altcoin News, Bitcoin News, Cryptocurrency news, FinTech News, News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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