PayPal
PYPL
has unveiled a feature called Checkout with Crypto in a bid to bolster its offerings in the booming cryptocurrency space.
Notably, the new feature allows customers to convert their cryptocurrency holdings seamlessly into fiat currency at checkout.
With the latest move, the company is offering a new way for customers to pay and businesses to get paid. Customers can checkout with cryptocurrency from a transaction, without any additional transaction fees.
Like any other payment mode, Checkout with Crypto will appear as a payment option if the customer opts to use the PayPal wallet for the transaction payment. For this, the customer’s PayPal wallet is required to have an adequate amount of cryptocurrency of a single type.
Bitcoin, Litecoin, Ethereum or Bitcoin Cash are the types of cryptocurrency that a customer can hold in the PayPal wallet.
After the payment is done, the customer will get a record of products purchased as well as cryptocurrency sales.
We note that the rollout is likely to aid the company to capitalize on the uptake of digital currency.
PayPal Holdings, Inc. Price and Consensus
PayPal Holdings, Inc. price-consensus-chart
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PayPal Holdings, Inc. Quote
Growing Crypto Efforts
The latest move bodes well for the company’s strengthening initiatives to expand its footprint in the promising cryptocurrency market.
Per a report from Fortune Business Insights, the particular market is expected to hit $1.8 billion in 2027 by witnessing a CAGR of 11.2% between 2020 and 2027.
Apart from Checkout with Crypto, PayPal recently made an announcement related to acquiring a Tel Aviv-based digital asset security technology provider —Curv. The buyout is expected to be completed by the first half of 2021. Post-acquisition, Curve will join PayPal’s newly created business unit dedicated to blockchain, cryptocurrency and digital currencies.
Additionally, the launch of a service, which allows PayPal’s customers to buy, hold and sell cryptocurrency directly from their PayPal account, remains noteworthy.
Further, the company has announced its intentions to enable cryptocurrency as a funding source across its 26 million merchants worldwide.
Rising Competition
We note that the latest move along with the above-mentioned efforts is likely to strengthen PayPal’s competitive position against one of its biggest peers namely
Square
SQ
.
Square is highly gaining from the growing adoption of Cash App, and strong customer demand and growth in bitcoin activities.
Further, PayPal is likely to intensify competition for companies like
Overstock.com
OSTK
and
JPMorgan Chase & Co.
JPM
— which are leaving no stone unturned to bolster their presence in the cryptocurrency market.
Currently, PayPal carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
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