PayPal expands crypto services for US business accounts By Investing.com

SAN JOSE – PayPal Holdings, Inc. (NASDAQ: PYPL) today unveiled a new feature for its U.S. business account holders, allowing them to buy, hold, and sell various cryptocurrencies. This move is part of the company’s broader efforts to enhance the utility of digital currencies. However, the service will initially exclude businesses in New York State due to regulatory considerations.

Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal, stated that the decision was influenced by the growing interest from business owners to have the same access to cryptocurrencies as individual consumers. According to da Ponte, PayPal aims to fulfill this market demand by offering these additional capabilities.

In addition to trading cryptocurrencies, PayPal now permits U.S. merchants to send and receive supported cryptocurrency tokens to and from external blockchain addresses, facilitating on-chain transfers to third-party wallets. This functionality marks a significant step in PayPal’s ongoing strategy to make cryptocurrencies more accessible and usable.

PayPal’s engagement with cryptocurrencies began in 2020 when it allowed customers to interact with digital currencies through their PayPal and Venmo accounts. The company continued to expand its cryptocurrency offerings with the introduction of the PayPal USD (PYUSD), a U.S. dollar-denominated stablecoin, in 2023. Earlier this year, PayPal integrated PYUSD into its Xoom platform, enabling fee-free transactions for eligible international transfers.

PYUSD is issued by Paxos Trust Company and maintains full backing by U.S. dollar deposits and similar assets. The stablecoin is regulated by the New York State Department of Financial Services and is available for trade on PayPal and Venmo.

PayPal, with a history of over 25 years in the digital payments industry, continues to innovate by providing secure and personalized money movement and commerce solutions. The company supports consumers and businesses across approximately 200 markets, fostering participation in the global economy.

This expansion of services is based on a press release statement from PayPal Holdings, Inc.

In other recent news, PayPal Holdings Inc (NASDAQ:). has been making significant strides in its business operations. The company reported an 11% increase in total payment volume and a 9% rise in revenue on a currency-neutral basis in its second-quarter earnings. Non-GAAP earnings per share also saw a substantial 36% year-over-year increase. However, due to uncertain economic conditions, PayPal is expected to reduce its global workforce by 9%, equating to approximately 2,500 jobs.

In addition to financial performance, PayPal has been active in forming strategic partnerships. The company’s integration with Amazon (NASDAQ:)’s ‘Buy with Prime’ service and collaboration with Adyen (AS:) to introduce Fastlane, a feature designed to streamline online transactions, have been key developments. These initiatives have reportedly increased guest checkout conversion rates to over 80% and reduced checkout times by 32%.

Analyst firms have provided mixed feedback on PayPal’s performance and future prospects. While Deutsche Bank and Mizuho have maintained a positive outlook, upgrading the stock and highlighting the company’s potential for continued growth, Goldman Sachs, Jefferies, and BMO Capital have maintained their neutral positions. These are the latest developments for PayPal.

InvestingPro Insights

As PayPal Holdings, Inc. (NASDAQ: PYPL) continues to make strides in the cryptocurrency space, its financial health remains a crucial factor for investors monitoring the company’s performance. According to InvestingPro data, PayPal boasts a robust market capitalization of $79.35 billion, illustrating the company’s significant presence in the financial services industry. The company’s Price-to-Earnings (P/E) ratio stands at 18.72, with a slight adjustment to 18.15 over the last twelve months as of Q2 2024, indicating how much investors are willing to pay for a dollar of earnings. This metric, coupled with a Price-to-Earnings Growth (PEG) ratio of 1.18, suggests that the stock’s price is valued fairly relative to its earnings growth.

Furthermore, PayPal has shown commendable revenue growth of 8.66% over the last twelve months leading up to Q2 2024, a testament to the company’s ability to increase its earnings. This growth is consistent with the company’s quarterly revenue growth of 8.21% in Q2 2024. An InvestingPro Tip highlights that PayPal is a prominent player in the Financial Services industry, which resonates with the company’s ongoing efforts to integrate cryptocurrency services and innovate within the digital payments sphere.

Investors following PayPal’s stock performance will find encouragement in the company’s strong return over the last three months, with a 32.04% price total return. This performance is particularly noteworthy as it aligns with the company’s recent endeavors to expand its cryptocurrency offerings. For more detailed insights and additional InvestingPro Tips, investors can explore the full list of metrics available on InvestingPro, which includes over 6 additional tips for PayPal at https://www.investing.com/pro/PYPL.

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