PayPal Is Not Going to Invest Corporate Cash in Bitcoin But Wants to ‘Capitalize’ on Its Growth
Payments giant PayPal Holdings Inc. has no interest in following Tesla’s footsteps, shared Chief Financial Officer John Rainey. However, the company will take advantage of the growing trend of digital currencies. Rainey said in a CNBC interview,
“We’re not going to invest corporate cash, probably, in sort of financial assets like that, but we want to capitalize on this growth opportunity that’s in front of us.”
PayPal’s cash flow grew by 48% in 2020 to $5 billion, which CEO Dan Shulman said, they want to use as a strategic weapon. He said,
“We want to use that cash. We want to use our balance sheet as a strategic weapon.”
“That may be returning cash to shareholders and it may be through acquisition, but every one of those dollars matter to us and we really take our capital allocation quite seriously.”
It was in October that PayPal started allowing its customers to buy, hold, and sell cryptocurrencies. Mastercard has also announced this week that it is planning to integrate support for some cryptos on its network this year.
PayPal plans to invest in companies that provide “complementary assets to our platform,” which can drive growth, Rainey said.
The company acknowledges the transition to digital currencies, with Schulman calling digital wallets a “natural complement to digital currencies” back in December and sharing that they serve 360 million digital wallets.
They are planning to offer crypto support on Venmo, a mobile wallet owned by PayPal, in the first half of this year.
The company is also extending these features to international markets, with Rainey stating on Thursday that it would be introducing the buy, sell, and hold crypto services to the UK in the near future.