SAN JOSE – PayPal Holdings, Inc. (NASDAQ: PYPL) today unveiled a new feature for US business account holders, allowing them to buy, hold, and sell a variety of cryptocurrencies. The move is part of the company’s wider efforts to improve the utility of the digital currency. However, the service initially excluded businesses in New York State due to regulatory considerations.
Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currency at PayPal, stated that the decision was influenced by the growing interest of business owners to have the same access to cryptocurrencies as individual consumers. According to da Ponte, PayPal aims to fulfill this market demand by offering these additional capabilities.
In addition to trading cryptocurrencies, PayPal now allows US merchants to send and receive supported cryptocurrency tokens to and from external blockchain addresses, facilitating on-chain transfers to third-party wallets. This functionality marks an important step in PayPal’s ongoing strategy to make cryptocurrencies more accessible and usable.
PayPal’s involvement with cryptocurrencies began in 2020 when it allowed customers to interact with digital currencies through their PayPal and Venmo accounts. The company continues to expand its cryptocurrency offering with the introduction of PayPal USD (PYUSD), a stablecoin denominated in US dollars, in 2023. Earlier this year, PayPal integrated PYUSD into the Xoom platform, enabling fee-free transactions for eligible international transfers. .
PYUSD is issued by Paxos Trust Company and maintains full backing of US dollar deposits and similar assets. Stablecoins are regulated by the New York State Department of Financial Services and are available for trading on PayPal and Venmo.
PayPal, with more than 25 years of history in the digital payment industry, continues to innovate by providing secure and private money movement and commerce solutions. The company supports consumers and businesses in approximately 200 markets, fostering participation in the global economy.
The expansion of this service is based on a press release from PayPal Holdings, Inc.
In other breaking news, PayPal Holdings Inc (NASDAQ:). has made significant strides in 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 36% year-over-year increase. However, due to the uncertain economic conditions, PayPal is expected to reduce its global workforce by 9%, equivalent to almost 2,500 jobs.
In addition to financial performance, PayPal has actively formed strategic partnerships. The company’s integration with Amazon (NASDAQ:) service ‘Buy with Prime’ and collaboration with Adyen (US:) to introduce Fastlane, a feature designed to streamline online transactions, has key development. The initiative reportedly increased guest checkout conversion rates by over 80% and reduced checkout time by 32%.
The firm’s analysts gave mixed feedback on PayPal’s performance and future prospects. While Deutsche Bank and Mizuho have maintained a positive outlook, upgrading shares and highlighting the company’s potential for continued growth, Goldman Sachs, Jefferies, and BMO Capital remain neutral. This is the latest development for PayPal.
InvestingPro Insights
As PayPal Holdings, Inc. (NASDAQ: PYPL) continues to make strides in the cryptocurrency space, financial health remains an important factor for investors monitoring the company’s performance. According to InvestingPro data, PayPal has a strong market capitalization of $79.35 billion, reflecting the company’s significant presence in the financial services industry. The company’s Price-to-Earnings (P/E) ratio is at 18.72, with a slight adjustment to 18.15 for the trailing twelve months in Q2 2024, indicating how much investors are willing to pay for dollar earnings. This metric, coupled with the Price-to-Earnings Growth (PEG) ratio of 1.18, shows that the stock price is reasonably priced relative to earnings growth.
Furthermore, PayPal has shown a commendable revenue growth of 8.66% over the last twelve months to Q2 2024, a testament to the company’s ability to grow revenue. This growth is consistent with the company’s monthly revenue growth of 8.21% in Q2 2024. InvestingPro Tip highlights that PayPal is an important player in the Financial Services industry, which corresponds to the company’s continuous efforts to integrate cryptocurrency services and innovation in digital payments. ball.
Investors following the performance of PayPal stock will find a boost to the company’s returns over the past three months, with a total price increase of 32.04%. This performance is particularly significant as it aligns with the company’s recent efforts to expand cryptocurrency offerings. For more detailed insights and additional InvestingPro Tips, investors can explore the full list of metrics available in InvestingPro, which includes more than 6 additional tips for PayPal at https://www.investing.com/pro/PYPL.
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