Global payments giant PayPal is expected to generate more than $2 billion in revenue from its cryptocurrency services over the next two years, according to Mizuho Securities research analyst Dan Dolev.
If the figure ends up surging to $2 billion, it would equate to 10% of PayPal’s total annual revenue following a shift in momentum towards cryptocurrencies.
At the time of writing Bitcoin is trading above $36,000 following a barnstorming rally that saw it eclipse its previous all-time high of $20,000 in December.
The rally has been attributed to a significant increase in institutional investment, with MicroStrategy investing more than $500 million into Bitcoin dating back to September.
PT was raised to a Street-high view of $350 from $290
— Christian Fromhertz (@cfromhertz) January 15, 2021
An influx of institutional investment has been accompanied by PayPal’s offering, which targets the retail market.
Dolev revealed in a note to clients that “50% of PayPal’s crypto clients open the app daily”, demonstrating a clear shift in sentiment around the asset class.
PayPal’s foray into cryptocurrency will have been a surprise to industry sceptics, but it comes as no major surprise to those involved in the industry following Facebook’s proposed digital currency in 2019.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.