After exceeding expectations, PayPal will double down on crypto, blockchain, and digital currencies in 2021
After a limited crypto trading launch that “exceeded expectations,” PayPal CEO Dan Schulman announced that the payments giant is ready to double down on cryptocurrencies. He said,
“We also saw an exceptional response from our crypto launch. […] The volume of crypto traded on our platform greatly exceeded our expectations.”
He further that crypto will be accepted “as a funding source when [users] shop at any of our 29 million merchants” late first quarter and that 2021 will feature an “extensive roadmap around crypto, blockchain, and digital currencies.”
The CEO also added that PayPal is consistently working with regulators and central banks to mold the future of a post-physical cash world. He said,
“We are significantly investing in our new crypto, blockchain, and digital currencies unit.”
Analysts had predicted that will be an increase of 3.87% in total accounts to 375 million, a $266.8 billion in total payments processed, & an 8% increase over Q3. But, the company broke both the records with $277 billion processed, 377 million in total accounts, and $21.45 billion in revenue.
Moreover, PayPal’s Q4 investor update materials have promised “digital currencies” as a “key focus area.” The company also stated that their “Buy, Hold, and Sell Cryptocurrencies” initiative would expand to “Venmo and select international markets” in 2021.
The company has also noticed that their crypto service users have become more active users after buying cryptocurrency, they have been logging in twice. PayPal’s materials have also stated that an “eCommerce experience” will be launched in 2021 that will provide “cryptocurrency as a funding source to pay at PayPal’s 29 million merchants around the globe.” These integrations will be done in fiat and would relieve its merchants of conversion fees.
In November 2020, PayPal took a critical step of adopting digital assets to allow its U.S. users to buy crypto directly through the app. The U.S. customers are limited to trading $20,000 per week. Since then, cryptocurrency trading on the platform has made new records of $242 million in transactions on Jan 11.
PayPal has also announced its goal to allow its customers to use cryptocurrencies to purchase at any of the 26 million merchants in its network from 2021. PayPal execs have also indicated that central bank digital currencies are “a matter of when and how they’re done, and not if.”