Mizuho Securities is waiting for a massive amount in revenues by 2023 for Paypal and its Bitcoin crypto derivatives service, starting with a figure of 20% only by 2021.
According to analyst Don Dolev, from the Japanese investment bank Mizuho Securities, Paypal will gather a massive amount that could surpass the $2 billion for its Bitcoin business by 2023. Likewise, Dolev indicated that by 2021 he thinks that the company will gather a total income that circles 20 % in gains.
Dolev sustains that there was a “dramatic increase in customer engagement due to cryptocurrencies”, with at least 50% of Paypal crypto-users entering and using the app daily. “Both our survey and management feedback reveals an increase in engagement due to crypto,” Dolev said in a recent note.
In October, Paypal announced that its more than 346 million active users are now able to buy, hold and sell “bitcoins” as well as other important digital assets via their Paypal accounts.
Explosive, Positive, and Sudden Reception of These Services
The company’s crypto service, which runs through Paxos exchange’s fiat-to-crypto service, Itbit, received an explosive and sudden reception as well as the interest of many potential investors since its announcement and launch.
In November, News Bitcoin reported that, following estimates from the hedge fund Pantera Capital, Paypal (70%, along with its competitor Square Cash App (30%), bought the entire offering of Bitcoin on Itbit since the leader firm began offering cryptocurrency services four weeks earlier, according to ZyCripto, Square had already generated up to $ 1.63 billion in revenue by the time Paypal launched its service.
The fact that a service like Paypal does not offer an option to trade with cryptocurrencies means that at the moment users purchase “crypto” via this platform, users are not obtaining either the asset as such or the private keys to export it to your private wallet.
This is important to take into account because if you are not able to obtain the private keys, you can neither access freely nor be the owner of these coins.
Returning to the Paypal topic, a Dolev survey found that Bitcoin merchants use the Paypal app three times more than non-Bitcoin merchants and had significantly higher cash balances in their Paypal digital wallets.
In December 2020, at least a fifth of all active Paypal users tried to make successful trades. Those operations were spotted even before the said month when the survey was launched, while approximately 65% were ready to make purchases in the 28 million businesses that already used Bitcoin.
According to Market Watch, Dolev raised its target price for Paypal shares from $ 290 to $ 350. However, the shares closed 0.94% lower at $ 239.79 on the Nasdaq Stock Exchange on Friday, January 15. Besides, in the last 52 weeks, the shares made a reach a maximum of $249.85 and a minimum of $82.07.
By: Jenson Nuñez
