In the letter
- Mizuho Securities, an investment bank, asked 380 PayPal users about their trading habits
- 17% said they had already traded Bitcoin on the app.
- PayPal started allowing US-based users to pay with Bitcoin last month.
According to a new survey from Mizuho Securities, the investment arm of Mizuho Financial Group, nearly a fifth of PayPal users could already take advantage of the app’s new Bitcoin capabilities.
Of the 380 users surveyed, 17% said they had used PayPal to exchange Bitcoin before, and 65% said they would use Bitcoin to pay for goods and services.
This is good news for the digital payments giant, which recently made big bets on the massive adoption of cryptocurrencies. The company ad this last month he would start support payments in Bitcoin, Ethereum, Bitcoin Cash, and Litecoin for users in the United States.
And CEO Dan Schulman was beat the drum for these cryptocurrencies as real payment systems, telling CNBC that “when you start to make crypto a potential funding instrument … it strengthens its usefulness and stabilizes it as well.”
The catch is that cryptocurrencies purchased in the PayPal app cannot be transferred to other wallets, and non-PayPal cryptocurrencies cannot be transferred. And when the crypto is spent on PayPal, it is automatically converted to fiat currency, which the trader ends up receiving.
Mizuho also suggested that trading Bitcoin in PayPal’s user base could be a good thing for the share price – the report sets the company’s share price target at $ 290, against $ 270 (it’s $ 218 today), and indicates that revenue could increase by around $ 20. % next year.
PayPal stock is already up over 100% since the start of the year. The price of Bitcoin is up almost 164% since the start of the year.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.