Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nasdaq  >  PayPal Holdings, Inc.    PYPL


SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

PayPal : to open up network to cryptocurrencies

10/21/2020 | 11:22am EST
The German headquarters of PayPal is pictured at Europarc Dreilinden business park south of Berlin in Kleinmachnow

LONDON (Reuters) - PayPal Holdings Inc said on Wednesday it will allow customers to hold bitcoin and other virtual coins in its online wallet and shop using cryptocurrencies at the 26 million merchants on its network.

The new service makes PayPal one of the largest U.S. companies to provide consumers access to cryptocurrencies, which could help bitcoin and rival cryptocurrencies gain wider adoption as viable payment methods.

The San Jose, California-based company hopes the service will encourage global use of virtual coins and prepare its network for new digital currencies that central banks and companies may develop, President and Chief Executive Dan Schulman said in an interview.

"We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role," he said.

U.S. account holders will be able to buy, sell and hold cryptocurrencies in their PayPal wallets over the coming weeks, the company said. PayPal plans to expand the service to its peer-to-peer payment app Venmo and some other countries in the first half of 2021.

The ability to make payments with cryptocurrencies will be available from early next year, the company said.

Other mainstream fintech companies, such as mobile payments provider Square Inc and stock trading app firm Robinhood Markets Inc, allow users to buy and sell cryptocurrencies, but PayPal's launch is noteworthy given its size.

The company has 346 million active accounts around the world and processed $222 billion in payments in the second quarter.

PayPal's shares were up 4% at 1418 GMT, set for their best day in a month.

Bitcoin <BTC=BTSP> hit its highest since July 2019 on the news. It was last up 4.8% at $12,494, taking gains for the original and biggest cryptocurrency above 75% for the year. Cryptocurrency market players said the size of PayPal meant the move would be a plus for bitcoin prices. "The price impact will be positive overall," Joseph Edwards of Enigma Securities, a cryptocurrency brokerage in London, said. "There's no comparison with regards to the potential exposure between the upside of PayPal offering this, and the upside of any similar previous offering."


Bitcoin and other virtual coins have struggled to become established as widely used forms of payment despite being around for more than a decade. Cryptocurrencies' volatility is attractive for speculators, but poses risks for merchants and shoppers. Transactions are also slower and more costly than other mainstream payment systems.

PayPal believes its new system will address these issues as payments will be settled using traditional currencies, such as the U.S. dollar. This means PayPal will be managing the risk of price fluctuations and merchants will receive payments in virtual coins.

"We are going about it in a fundamentally different way to make sure we provide the maximum amount of safety to our merchants," Schulman said.

PayPal's service comes as some central banks have announced plans to develop digital versions of their currencies, following a Facebook-led cryptocurrency project Libra in 2019, which was met by strong regulatory pushback..

PayPal was among the founding members of this project but dropped out after a few months.

PayPal has secured the first conditional cryptocurrency licence from the New York State Department of Financial Services. The company will initially allow purchases of bitcoin and other cryptocurrencies called ethereum <ETH=BTSP>, bitcoin cash <BCH=BTSP> and litecoin <LTC=BTSP>, it said.

PayPal is teaming up with cryptocurrency firm Paxos Trust Company to offer the service.

(Reporting by Anna Irrera and Tom Wilson in London. Editing by Richard Chang and Jane Merriman)

By Anna Irrera and Tom Wilson

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
FACEBOOK INC -0.76% 279.7 Delayed Quote.36.27%
PAYPAL HOLDINGS, INC. 1.51% 217.77 Delayed Quote.101.32%
All news about PAYPAL HOLDINGS, INC.
12/03Affirm looks to Canada with acquisition of buy-now-pay-later firm PayBright
12/03PAYPAL : Max Levichin's Affirm to buy Canada's PayBright for $264.4 mln
12/02African Borrowers Turn On Cellphones for Covid-19 Financial Lifelines
12/01BlockFi partners with Visa to launch bitcoin rewards credit card
11/30Bitcoin surges to all-time record as 2020 rally powers on
11/24PAYPAL : Bitcoin at $100,000 in 2021? Outrageous to some, a no-brainer for backe..
11/24ABA-NATIONAL SURVEY : 99% of Consumers Give High Marks to Their Bank's Online an..
11/23CEO’s of PayPal, Logiq, Peak Fintech, and Square Discuss Bitcoin, Finte..
11/23Bitcoin Trades Again Near Record, Driven by New Group of Buyers
11/20INFLATION-HEDGE, RISK-ON BET : What's behind bitcoin's 2020 rally?
More news
Financials (USD)
Sales 2020 21 422 M - -
Net income 2020 3 396 M - -
Net cash 2020 8 887 M - -
P/E ratio 2020 75,5x
Yield 2020 -
Capitalization 255 B 255 B -
EV / Sales 2020 11,5x
EV / Sales 2021 9,56x
Nbr of Employees 23 200
Free-Float 90,7%
Duration : Period :
PayPal Holdings, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends PAYPAL HOLDINGS, INC.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 43
Average target price 224,25 $
Last Close Price 217,77 $
Spread / Highest target 43,3%
Spread / Average Target 2,97%
Spread / Lowest Target -43,1%
EPS Revisions
Daniel H. Schulman President, Chief Executive Officer & Director
John J. Donahoe Chairman
John D. Rainey Chief Financial Officer
Sripada Shivananda Chief Technology Officer & Senior Vice President
John H. Kunze SVP-Global Consumer Product & Technology
Sector and Competitors
1st jan.Capitalization (M$)
PAYPAL HOLDINGS, INC.101.32%255 159
VISA13.19%497 092
MASTERCARD15.33%343 291
AVAST PLC7.51%6 744