PayPal (PYPL) has introduced a long-requested feature among its crypto customers: the ability to transfer cryptocurrencies to external wallets. PYPL stock rose more than 2% to close at $88.59 on June 7. However, the stock is still down about 55% year-to-date, in what may start to look like a bargain as markets begin to show signs of bouncing back following the recent selloff.
California-based PayPal operates a digital financial platform that connects millions of shoppers and merchants, offering services such as payment processing and credit.
PayPal Answers Its Crypto Community’s Prayer
PayPal entered the crypto business in 2020, letting users buy, sell, and hold Bitcoin and other cryptocurrencies on its platform. It also lets users pay with crypto at the checkout. However, PayPal denied users the ability to move their crypto to third-party platforms.
With the new directive in place, users can not only transfer their crypto to external wallets but also move crypto from third-party wallets to PayPal. The ability to transfer crypto between PayPal and external platforms has been one of the most requested features among PayPal’s crypto community.
Apart from Bitcoin, the other cryptocurrencies supported by PayPal are Bitcoin Cash, Ethereum, and Litecoin.
Jose Fernandez da Ponte, Senior Vice President and General Manager, Blockchain, Crypto and Digital Currencies, commented, “Allowing PayPal customers the flexibility to move their crypto assets…into, outside of, and within our PayPal platform reflects the continuing evolution of our best-in-class platform and enables customers to interact with the broader crypto ecosystem.”
Wall Street’s Take
On June 7, Mizuho Securities analyst Dan Dolev reiterated a Buy rating on PayPal with a price target of $120, which indicates 35.5% upside potential.
Consensus among analysts is a Strong Buy based on 26 Buys, five Holds, and one Sell. The average PayPal price target of $127.07 implies upside potential of 43.4%.
Blogger Opinions
TipRanks data shows that financial blogger opinions are 85% Bullish on PYPL, compared to a sector average of 65%.
Key Takeaway for Investors
With crypto adoption in payment and investment expanding, competition is heating up in the crypto service market. PayPal offering a feature that its crypto users have long requested could at least help it prevent its current customers from defecting to rival platforms like Robinhood (HOOD) and Block’s (SQ) Cash App. Perhaps that move could help keep PayPal on the list of potentially best crypto stocks to buy now.
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