The line between traditional banks, fintech, and cryptocurrency firms is becoming increasingly blurred. The recently introduced Stablecoin Act will enable crypto companies to offer services similar to those of banks. Meanwhile, banks and payment providers are striving to integrate blockchain technology into everyday business operations.
Take PayPal, for instance. They got a head start in this area, launching cryptocurrency services back in 2020. Since then, they’ve been steadily working to incorporate crypto and blockchain into their framework.
Currently, PayPal boasts over 430 million active customer and merchant accounts. When combined with their Stablecoin and crypto services, this positioning offers a significant edge for the payments giant.
Here’s a brief look at some steps PayPal has taken in the cryptocurrency arena:
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October 2020: PayPal launches its cryptocurrency service, allowing users to buy, sell, and hold Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. Venmo follows suit in April 2021.
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March 2021: PayPal introduces a crypto checkout feature, enabling customers to use cryptocurrency for specific merchants.
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August 2023: PayPal plans to launch its own Stablecoin, called PayPal USD.
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July 2025: PayPal World is set to launch, connecting digital wallets with promises of seamless transfers and international payments.
When it comes to price, cryptocurrencies, particularly Bitcoin, have seen a remarkable surge this year. In comparison, PayPal’s performance has seen a decline of over 20% this year as of September 16th, while Coinbase has gained more than 30%, and Bitcoin itself has risen about 25%.
However, fintech companies like PayPal face challenges, including stiff competition, regulatory hurdles, and a broader economic landscape that remains uncertain. On the flip side, the cryptocurrency sector is enjoying a wave of optimism, thanks to more favorable attitudes coming out of Washington.
It’s important to keep in mind that, in the crypto landscape, having robust networks and infrastructure could be a game-changer for companies like PayPal.
Investors should consider this before diving into the stock. Though analysts suggest ten stocks worth looking at, PayPal isn’t among them. Those recommendations might just yield bigger returns in the forthcoming years.
