The online payment platform opened crypto trading to US customers on 12 November.
PayPal shares hit a record high on Monday, capping a strong run. In the process, it outperformed the Nasdaq and the US stock market as a whole.
Since 12 November, the Nasdaq tech index has gained about 6.5 per cent. The S&P 500 index of large cap stocks is up 3.5 per cent over the same period.
PayPal’s entry into the cryptocurrency space may not be the only catalyst of its tremendous growth, but the payment processor is in a good position to benefit from the growing adoption of digital assets. Some analysts have even suggested that a higher Bitcoin (BTC) exchange rate could have a positive effect on PayPal’s further development.
There are also signs that the payment processor could positively influence the bitcoin price. According to recent industry data, PayPal may have bought up to 70 percent of newly mined BTC in the weeks leading up to the Bitcoin Up launch of its crypto platform in the United States.
Estimates vary, but a 2019 survey of 5,000 people found that 6.2 percent of Americans over 18 own bitcoin. According to the survey, another 7.3 percent plan to buy BTC for the first time.
If these figures are to be believed, cryptocurrencies could have a positive impact on PayPal’s business as more and more people look for easy ways to get started. Proof of this is Square’s Cash app, which saw a jump in sales since it enabled bitcoin purchases. In fact, nearly 80 per cent of Cash App’s revenue in the third quarter came from fees that came from bitcoin purchases.
Shares of PayPal Holdings are up 17 per cent since 12 November. That was the day its crypto trading platform opened to US customers.
PayPal plans to launch its crypto services globally in early 2021. CEO Dan Shulman assured that it is only a matter of time before his company supports digital central bank currencies when they become available.