PayPal will significantly expand its cryptocurrency services in 2021. This was announced by CEO Dan Schulman, reporting the results for the third quarter of 2020.
In presenting the data, referring to cryptocurrencies, Schulman said:
“This is just the beginning of the opportunities we see as we work hand-in-hand with regulators to accept new forms of digital currencies”.
This suggests that services could include the custody of digital currencies issued by central banks, the so-called CBDCs.
At the moment, however, cryptocurrency trading services are only available to 10% of users in the US. But, the CEO said, demand is very high, well beyond expectations.
According to PayPal’s plans, in 2021 it will be possible to make cryptocurrency payments using PayPal accounts directly.
PayPal, a boom in Q3 2020
The financial results of Q3 in 2020 say that PayPal is well on track. The report released by the company indicates impressive numbers:
- $247 billion in total payment volume (+36% since last year);
- 15.2 million new accounts (+55% since last year),
- 361 million active accounts;
- $5.46 billion in net revenue (+25% from last year),
- 4 billion transactions, (+30% since last year).
With these numbers, PayPal is opening up to the cryptocurrency sector, explicitly saying that the company:
“Signaled its plans to significantly increase cryptocurrency’s utility by making it available as a funding source for purchases at its 28 million merchants worldwide”.
This exponential growth was enthusiastically commented on by Dan Schulman:
“PayPal’s third quarter was one of the strongest in our history. Our growth reinforces the essential role we play in our customers’ daily lives during this pandemic. Going forward, we are investing to create the most compelling and expansive digital wallet that embraces all forms of digital currencies and payments, and operates seamlessly in both the physical and online worlds”.
PayPal is entering the cryptocurrency world
Ever since it officially announced its cryptocurrency trading service, PayPal has given the industry a strong boost, contributing to the Bitcoin rally. BTC, as a result of the news, triggered a bullish race that stopped at just below $14,000.
Now that the first purchase of BTC on PayPal has been made, all that is left to do is wait for the implementation of the new services to a very large number of users.
With PayPal entering the space, mass adoption of cryptocurrencies is within reach.