PayPal’s Bitcoin revenue expected to top $2 billion by 2023

Global payments giant PayPal is expected to generate more than $2 billion in revenue from its cryptocurrency services over the next two years, according to Mizuho Securities research analyst Dan Dolev.

If the figure ends up surging to $2 billion, it would equate to 10% of PayPal’s total annual revenue following a shift in momentum towards cryptocurrencies.

At the time of writing Bitcoin is trading above $36,000 following a barnstorming rally that saw it eclipse its previous all-time high of $20,000 in December.

The rally has been attributed to a significant increase in institutional investment, with MicroStrategy investing more than $500 million into Bitcoin dating back to September.

An influx of institutional investment has been accompanied by PayPal’s offering, which targets the retail market.

Dolev revealed in a note to clients that “50% of PayPal’s crypto clients open the app daily”, demonstrating a clear shift in sentiment around the asset class.

In December, Pantera Capital CEO Dan Morehead said that demand on PayPal’s platform was more than 100 percent of Bitcoin’s mining supply.

PayPal’s foray into cryptocurrency will have been a surprise to industry sceptics, but it comes as no major surprise to those involved in the industry following Facebook’s proposed digital currency in 2019.

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