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PayPal Expected to Generate $2 Billion Worth of Revenue from Bitcoin: Mizuho

Fri, 01/15/2021 - 14:16
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Alex Dovbnya
Mizuho has estimated PayPal's future revenue from cryptocurrency services
PayPal Expected to Generate $2 Billion Worth of Revenue from Bitcoin: Mizuho
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Dan Dolev, Mizuho Securities fintech research analyst, expects PayPal Holdings Inc. to generate up to $600 million worth of revenue from its cryptocurrency services alone in 2021, MarketWatch reports.

In 2023, according to Dolev's estimations, this figure could balloon to $2 billion, which would account for 10 percent of the total revenue.

A "dramatic" engagement boost

PayPal officially ventured into the cryptocurrency market back in October and then allowed all U.S. users to trade and hold digital currencies the following month.

After conducting its new proprietary survey, Mizuho found out that its app has seen a "dramatic" increase in engagement because of Bitcoin.

Half of PayPal's cryptocurrency-focused users come back to the app every single day. In fact, Bitcoiners tend to use the app three times more often than no-coiners.

Back in early December, U.Today also reported that 65 percent of PayPal users were ready to use Bitcoin for purchases.

Due to this great demand, Mizuho has substantially upped its target for PayPal (NASDAQ: PYPL) stock from $290 to $350.

Evercore Sees Cryptocurrency Offering as Major Catalyst for PayPal in 2021

PayPal's record-breaking trading volumes

In a December interview, Pantera Capital CEO Dan Morehead claimed that PayPal was absorbing over 100 percent of all fresh Bitcoin supply.

Earlier this week, the payments giant saw a huge increase in trading volumes, with $242 million worth of digital currencies changing hands on Monday alone.

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Bitcoin had a rough start to the week: it collapsed to nearly $30,000 before recovering back to $40,000 yesterday.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at