SAN JOSE — PayPal Holdings, Inc. (Nasdaq: PYPL) today unveiled a new feature for U.S. business account holders that will allow them to buy, hold and sell various cryptocurrencies. The move is part of the company’s broader efforts to boost the utility of digital currencies. However, the service will initially exclude businesses in New York State due to regulatory considerations.
Jose Fernandes Da Ponte, PayPal’s senior vice president of blockchain, crypto and digital currency, said the decision was driven by the growing interest of business owners to have the same access to cryptocurrencies as individual consumers. According to Da Ponte, PayPal aims to meet this market demand by offering these additional capabilities.
In addition to cryptocurrency trading, PayPal now allows merchants in the United States to send and receive supported cryptocurrency tokens to and from external blockchain addresses, facilitating on-chain transfers to third-party wallets. This functionality represents an important step in PayPal’s ongoing strategy to make cryptocurrencies more accessible and usable.
PayPal’s involvement in crypto began in 2020 when it allowed customers to interact with digital currencies through their PayPal and Venmo accounts. The company continued to expand its crypto offerings with the introduction of PayPal USD (PYUSD), a USD-denominated stablecoin, in 2023. Earlier this year, PayPal integrated PYUSD into its Xoom platform, enabling fee-free transactions for eligible international transfers.
PYUSD is issued by Paxos Trust Company and maintains full backing through USD deposits and similar assets. The stablecoin is regulated by the New York State Department of Financial Services and is available for trading on PayPal and Venmo.
With over 25 years of history in the digital payments industry, PayPal continues to innovate by providing secure, personalized solutions for moving money and commerce. The company supports consumers and businesses in nearly 200 markets, enabling participation in the global economy.
This expansion of services is based on a press release from PayPal Holdings, Inc.
In other recent news, PayPal Holdings Inc. PayPal (NASDAQ:) made significant progress in its business operations. The company reported an 11% increase in total payment volume and a 9% increase in revenue on a currency-neutral basis in its second-quarter earnings. Non-GAAP earnings per share also saw a significant increase of 36% year-over-year. However, due to the uncertain economic conditions, PayPal is expected to reduce its global workforce by 9%, which equates to approximately 2,500 jobs.
In addition to financial performance, PayPal has been active in forming strategic partnerships. The company’s integration with Amazon’s (NASDAQ:) Buy with Prime service and collaboration with I condemn (AS:) Introducing Fastlane, a feature designed to simplify online transactions, was a major development. These initiatives reportedly increased guest checkout conversion rates by over 80% and reduced checkout times by 32%.
Analysts have given mixed reviews on PayPal’s performance and future prospects. While Deutsche Bank and Mizuho maintained a positive outlook, upgraded the stock and highlighted the company’s potential for continued growth, Goldman Sachs, Jefferies and BMO Capital maintained neutral stances. Here’s the latest developments for PayPal.
InvestingPro Insights
As PayPal Holdings, Inc. (NASDAQ: PYPL) continues to make significant progress in the crypto space, its financial health remains a crucial factor for investors monitoring the company’s performance. According to InvestingPro data, PayPal has a strong market cap of $79.35 billion, demonstrating the company’s significant presence in the financial services sector. The company’s price-to-earnings (P/E) ratio is 18.72, slightly revised to 18.15 over the past 12 months as of Q2 2024, indicating how much investors are willing to pay for a single dollar of earnings. This metric, coupled with a price-to-earnings-growth (PEG) ratio of 1.18, suggests that the stock is relatively fairly priced for its earnings growth.
Furthermore, PayPal has shown a commendable revenue growth of 8.66% over the past 12 months through Q2 2024, a testament to the company’s ability to grow its profits. This growth is in line with the company’s quarterly revenue growth of 8.21% in Q2 2024. InvestingPro’s advice highlights that PayPal is a prominent player in the financial services industry, which resonates with the company’s ongoing efforts to integrate cryptocurrency services and innovate in the digital payments space.
Investors tracking PayPal stock performance will find encouragement in the company’s strong return over the past three months, with a total price return of 32.04%. This performance is particularly noteworthy as it aligns with the company’s recent efforts to expand its cryptocurrency offerings. For more detailed insights and additional InvestingPro tips, investors can explore the full list of metrics available on InvestingPro, which includes 6+ additional PayPal tips at https://www.investing.com/pro/PYPL.
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