Financial technology company PayPal Holdings (PYPL) is allowing merchants in the U.S. to Buy, Hold, and Sell a variety of cryptocurrencies as it seeks to expand its offerings.
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PayPal said that, going forward, all business accounts in America will be able to trade in crypto on its platform. U.S. merchants will also be able to transfer cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) to third-party crypto wallets that are set-up on its site.
Management at PayPal said they are committed to increasing the utility of cryptocurrencies and enabling businesses to use digital coins and tokens. The company already offers cryptocurrencies to individuals that have PayPal and Venmo accounts.
Expanding Digital Products
PayPal is making cryptocurrencies a central part of its growth strategy. Earlier this year, the company launched the PayPal USD stablecoin that is built on the Solana (SOL) blockchain. Stablecoins are cryptocurrencies whose value is tied to an underlying asset such as the U.S. dollar or the price of gold.
With nearly 400 million consumer accounts and 35 million merchant accounts, PayPal handles about a quarter (25%) of the world’s e-commerce transactions. The company has launched several innovations this year to attract more users, including a faster checkout experience and artificial intelligence-generated recommendations. PYPL stock has risen 26% so far this year.
Is PYPL Stock a Buy?
PayPal stock has a Moderate Buy rating among 33 Wall Street analysts. This is based on 18 Buy, 15 Hold, and no Sell recommendations made in the last three months. The average price target on PYPL stock of $77.08 implies 0.36% downside risk from current levels.
