Mizuho Securities analyst Don Dolev has predicted that Paypal will earn up to $ 2 billion in revenue from its bitcoin business by 2023. This year, he expects the payment giant’s total revenues to increase by 20%.
Dolev says there has been a “dramatic increase in crypto engagement,” with 50% of Paypal’s crypto users opening the app daily. “Both our survey and management commentary reveal a dramatic increase in engagement thanks to crypto,” said Dolev in a note to customers this week.
Paypal announced in October that its 346 million active users can now buy, hold and sell bitcoin and other digital assets with their Paypal accounts. The company’s crypto service, which runs on Paxos’ fiat-to-crypto exchange, Itbit, has since seen an explosion of interest.
Ever, Paypal was buying 70% of all newly minted bitcoin. Dolev’s survey found that bitcoin (BTC) merchants use the Paypal app three times as often as non-bitcoiners and that they had significantly higher cash balances on their Paypal digital wallets.
Dolev increased his target price for Paypal stock from $ 290 to $ 350. The stock closed 0.94% lower on Friday at $ 239.79 on the Nasdaq Stock Exchange. In the past 52 weeks, the shares reached a high of $ 249.85 and a low of $ 82.07.
In a related development, Lisa Ellis, an analyst at Moffett Nathanson, predicted that Paypal’s crypto business will contribute up to $ 600 million to group revenue by 2021. “In the long run, we believe Paypal’s cryptocurrency initiatives have significant strategic value,” she said. quoted by Market Watch.
Ellis added that this will help “diversify the Paypal and Venmo apps into ‘destination apps’ for a wide variety of financial services, and position Paypal to shape the long-term role of cryptocurrencies in the consumer payment system. “
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