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Global payments giant PayPal is expected to generate more than $ 2 billion annually from cryptocurrency services, which include Bitcoin, Ethereum, Bitcoin Cash and Litecoin, in the next two years, according to Dan Dolev, research analyst at Mizuho Securities.
If the figure rises to $ 2 billion, as expected, it will equal 10 percent of PayPal's total annual revenue.
In addition, according to the studies, the use of crypto money services PayPal's application has significantly increased. Half of PayPal's cryptocurrency users open the app every day. Those who trade Bitcoin via PayPal are three times more likely to use the PayPal application than those who do not have Bitcoin. In addition, their cash balances are greater.
Accordingly, Dolev increased the price target for PayPal's stocks from $ 290 to $ 350.
MoffettNathanson analyst Lisa Ellis is also optimistic about the opportunity in Bitcoin. Ellis emphasized that they believe PayPal's cryptocurrency startups have significant strategic value in the long run. Ellis raised his price target from $ 280 to $ 300. In the short term, Ellis thinks cryptocurrency services could contribute to PayPal's 2021 revenue in the range of $ 300 to 600 million. PayPal stock has increased by more than 100 percent in the last 12 months.
The company aims to expand the use of cryptocurrency services outside of the USA and Venmo this year, as well as enable cryptocurrency acceptance in 28 million businesses integrated with PayPal.
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