Mizuho Securities analyst Don Dolev has forecast that PayPal will generate up to $ 2 billion in revenue from its Bitcoin business by 2023. This year, he expects the payment giant’s total revenue to grow by 20%.
According to Dolev, exposure has increased dramatically due to crypto. 50% of PayPal crypto users open the app daily. “Both our survey and our management comment show a dramatic increase in exposure due to crypto.” said Dolev in a note to customers this week.
PayPal announced in October that its 346 million active users can now buy, hold and sell Bitcoin and other digital assets through their PayPal accounts. The company’s crypto service running on Paxos’ fiat-to-crypto exchange Itbit has seen an explosion of interest since then.
At one time, PayPal was buying 70% of all newly minted bitcoin. Dolev’s survey found that Bitcoin (BTC) Merchants use the PayPal app three times as often as non-Bitcoiners and had significantly higher cash balances on their digital PayPal wallets.
Dolev raised his target price on the PayPal stock from $ 290 to $ 350. The shares closed on the Nasdaq Stock Exchange on Friday 0.94% at $ 239.79. Over the past 52 weeks, stocks have hit a high of $ 249.85 and a low of $ 82.07.
In a similar development, Lisa Ellis, an analyst at Moffett Nathanson, predicted that PayPal’s crypto business will contribute up to $ 600 million to consolidated revenue by 2021. “In the long term, we believe that PayPal’s cryptocurrency initiatives have significant strategic value,” she said, quoted by Market Watch.
Ellis added that this will help “diversify the PayPal and Venmo apps into” target apps “for a wide range of financial services and position PayPal to help shape the long-term role of cryptocurrencies in the consumer payment system . “
What do you think of PayPal’s Bitcoin sales estimates? Let us know in the comments below.
Photo credit: Shutterstock, Pixabay, Wiki Commons