Nearly Two-Thirds of PayPal Users Aim to Use Bitcoin at Merchant Stores: Study Finds
- Nearly 20% of PayPal users are ready to use and hold Bitcoin (BTC) on the platform, report.
- Can this push BTC past its recently set all-time high price?
- Research firm sets PayPal stock price target set at 35% increase due to BTC excitement.
Nearly a fifth of PayPal users are jumping on to the Bitcoin (BTC) train, a Japanese investment bank report, Mizuho Securities, reported. According to the survey carried out by 380 PayPal users, there is an uptake in BTC purchases on the global payments platform as users take advantage of PayPal’s Bitcoin capabilities.
According to the survey, 17% of the respondents said they had already purchased Bitcoin on PayPal, with a further 65% confirming they will use the top crypto in daily purchases of goods and services.
After years of belittling Bitcoin adoption and banning its customers from participating in Bitcoin trading, PayPal finally embraced cryptocurrencies. In October this year, BEG reported PayPal would allow customers to buy and sell BTC alongside other top cryptocurrencies such as Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
Since Bitcoin's price has exploded to set new all-time highs as retail customers on the payments platform stack up on the top crypto, Michael Santoli, a CBNC markets commentator, explained BTC’s ripping price growth as a factor of PayPal accumulating more BTC for their customers to purchase.
“Bitcoin ripping in part because PayPal and Square are buying loads of it to facilitate customer trading,” he wrote on Twitter.
Apart from the boost in Bitcoin’s price and usage on PayPal, user engagement, usage frequency, and PayPal’s stock monetization potential have also seen a boost following BTC’s integration. The survey reads,
“About 50% of PayPal's bitcoin traders reported increased usage of the PayPal app after beginning to trade bitcoin.
This compares with just 9% who reported reduced engagement.”
Moreover, PayPal has found it difficult to convert non-Bitcoiners into Bitcoiners despite the growth in BTC purchases on the platform. Only about 8% of the non-bitcoin owners have purchased crypto through PayPal, with 42% of the non-Bitcoin holders stating they “do not know yet” if they will purchase the top crypto, the report stated.
Despite the hiccups, PayPal’s integration of Bitcoin has seen the company’s share price (PYPL) double over the course of 2020. Mizuho Securities has since increased its PYPL share price target from $270 to $290 due to BTC and crypto excitement on the platform, a 33% increase from the current price of $218 per PYPL share. Bitcoin, on the other hand, has experienced a 190% increase over the course of 2020, despite crashing to $3,500 in March.
NOTE: With over 200 million customers on its platform, a sample size of 380 does not give the full picture of the Bitcoin purchases and sales already made on PayPal.