PayPal Holdings saw its shares move higher by 4%. Among the tailwinds that the payment processor has seen recently, PayPal got a vote of confidence from a stock analyst on Monday.
Credit Suisse gave positive comments about PayPal, boosting its price target on the stock to $190 per share, the highest among analysts right now. The increase stems from the fact that investors simply aren’t giving full credit to the payment processor’s business prospects. PayPal has gained market share during the pandemic, with CEO Dan Schulman having said that April was “probably the strongest month for PayPal since we became a public company.” That momentum continued into May, with record adoption of the platform from new users.
PayPal also stands to benefit from the success of partners around the world. The company invested $750 million last year in Latin American e-commerce giant MercadoLibre (NASDAQ: MELI), which has its own Mercado Pago payment processing system that’s gaining similar traction across its territory. PayPal also licensed a majority stake in China’s GoPay, opening up even more opportunities.
It’s not surprising to see PayPal’s ambitions becoming successful. The fintech stock has been on the cutting edge of the industry for quite a while, and it’s putting itself in a position to build on its growth in the years to come.
PayPal to Reportedly Support Cryptocurrency Direct Transactions
PayPal plans to roll out its crypto offering “in the next three months, maybe sooner.”
Online-payments giant PayPal Holdings is looking to explicitly unleash cryptocurrencies onto its client base that reportedly boasts over 320 million people.
According to a report by CoinDesk, three sources have confirmed to the crypto industry publication that PayPal and its affiliated platform Venmo will allow their users to “directly” buy and sell several cryptocurrencies, though which coins they will support are yet to be revealed.
“They are going to have some sort of a built-in wallet functionality so you can store it there,” one source said, adding that he expects the company “would be working with multiple exchanges to source liquidity.”
PayPal favors blockchain over cryptocurrencies
As the mainstream payment industry has woken to cryptocurrency its related industry, PayPal has finally been forced to take note. Until recently, PayPal’s stance on the entire ecosystem was that they are much more pro blockchain but not fully vested in the cryptocurrency side of things.
These ambitions, however, took a blow after PayPal was the first company to pull out of the coalition of companies involved in a Facebook-led cryptocurrency initiative, Libra Association.
At the time, PayPal did not give a reason for leaving the project, but shortly after there were a few pieces of evidence to suggest that the payment giant is showing interest in getting involved in cryptocurrency.
A prime, and recent example of PayPal’s involvement in the space was the firm’s investment in cryptocurrency compliance and risk management platform TRM Labs. PayPal also filed many related patents including one to speed up bitcoin transaction processing times through a faster cryptocurrency payment system.
PayPal Long (Buy)
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