Digital payment giant PayPal (PYPL) has unveiled a new service that will make it easy for people in the U.K. to buy, hold, and sell cryptocurrencies. Expected to start rolling out this week, the service will offer a secure and responsible way of handling virtual currencies. Additionally, the company will make it easy to research and learn about the new asset class’s opportunities and risks.
The unveiling of the crypto service in the U.K. marks its first expansion beyond the U.S. Notably, in the U.K., people can choose between Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Customers will choose the amount of crypto they wish to purchase and follow prompts to complete transactions.
Markedly, there will be no fees to hold cryptocurrencies in PayPal accounts. However, customers will have to pay transaction fees and currency conversion fees for buying and selling virtual currencies. (See PayPal stock charts on TipRanks)
According to Jose Fernandez da Ponte, PayPal Vice President and General Manager for blockchain and cryptocurrencies, the new service is a way of helping people in the U.K. explore cryptocurrencies.
“We are committed to continue working closely with regulators in the UK, and around the world, to offer our support—and meaningfully contribute to shaping the role digital currencies will play in the future of global finance and commerce,” da Ponte said.
PayPal is one of the biggest companies to add support for digital currencies. Last October, the company confirmed that it will allow U.S. customers to buy, hold, and sell cryptocurrencies. It followed the announcement in March related to “Checkout,” a new offering that let U.S. customers use their crypto holdings to make payments at businesses worldwide.
Earlier this month, Morgan Stanley analyst James Faucette reiterated a Buy rating on the stock with a $340 price target, implying 24.56% upside potential to current levels. The rating reaffirmation followed the company’s revelations in its 10Q report that it is under SEC’s investigation related to its debit practices.
“The SEC’s investigation of PYPL denotes risk to revenue streams generated from high debit card fees, and we have long-expected that credit will be the more durable revenue source,” Faucette stated.
Consensus among analysts is a Strong Buy based on 22 Buys and 3 Holds. The average PayPal price target of $336.91 implies 23.43% upside potential to current levels.
PYPL scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Related News:
Foot Locker Beats Q2 Consensus Estimates; Shares Pop 7%
Nexstar Snaps up The Hill for $130M
What Do Astra Space’s Earnings and Risk Factors Tell Investors?
