PayPal has paid its interest in crypto saying it doesn’t want to be left out of any cryptocurrency bounce. Square’s Cash app already offers a feature of buying and selling bitcoin and other cryptocurrencies directly from the app. PayPal will soon release such an app.
PayPal would mark a reversal for the payment giant, if the company were to move forward with the ability to buy and sell cryptocurrencies. We know TRM Labs to be a cryptocurrency risk management platform where PayPal ventures invested in. But the company is yet to offer the ability to buy and sell Bitcoin and other digital assets. COVID-19 has left interest among several tech giants about Bitcoin.
Bitcoin has seen a price upsurge in mid-March. A currency digital wallet company BRD has been setting records for the number of downloads and the company has added 678,000 users in the U.S. alone.
Square announced customers can set automatic recurring purchases of Bitcoin in the Cash app to make the process easier for its users. Robinhood has been offering the ability to buy cryptocurrencies since 2018 and there has been an uptick in mobile trading usage. The company became able to raise $280 million in funding in May. During the pandemic, stocks and bonds were in tatters leaving opportunity to Bitcoin investment as alternative.
Bitcoin had a demand in cross-border payment when traditional payments were shut down. Once PayPal enters Bitcoin market, it will be a big step for both of them. The pandemic has driven the shares of PayPal and Mark Palmer, a BTIG analyst downgraded the company to neutral from buy. He thinks PayPal will have to provide a timeline as to when Venmo will be profitable as well as prove its in-store platform has benefited from the roll out of QR codes to drive more growth. Palmer said he wants the company to use it to make buys of bill payment companies not cryptocurrency assets.