Global payment giant PayPal is expected to generate more than $2 billion in revenue through its cryptocurrency services by 2023. The estimation has been made by Mizuho Securities analyst, Don Dolev. If the estimation turns out to be true then the revenue earned from its cryptocurrency services would equate to 10% of PayPal’s total revenue.
The findings of the analysts have revealed that crypto users have used the PayPal app three times in comparison to non-crypto users. Meanwhile, crypto users also have a significant cash balance on their PayPal digital wallets in comparison to nocoiners.
According to Don Doley, Paypal’s overall revenue will jump up to 20%. He said that the payment company had a dramatic increase in crypto engagement with upto 50% of its crypto users opening the app daily, saying
Dolev revealed in a note to clients that 50% of PayPal’s crypto clients open the app daily, demonstrating a clear shift in sentiment around cryptocurrencies.
The analyst raised his target price for the PayPal stock to $350 from $290. Over the past 52 weeks, PayPal shares have reached a high of $249.85 and a low of $82.07.
In Oct. 2020, PayPal announced that its users will be able to buy, hold and sell Bitcoin and other cryptocurrencies using their PayPal accounts. The company’s crypto service is provided by Paxos’ fiat-to-crypto exchange, Itbit. An increased demand for institutional investment has been accompanied by PayPal’s offering, which targets the retail market into buying Bitcoin.
In December 2020 CEO of Pantera Capital, Dan Morehead stated that the demand on PayPal’s platform was more than 100% of Bitcoin’s mining supply. In a related topic, Lisa Ellis, an analyst at Moffett Nathanson predicted that PayPal’s crypto business will contribute up to $600 million to group revenue in 2021.