- Paypal and its subsidiary, Venmo rumored to be on the cusp of an association with Cryptocurrency.
- In the past, they have maintained their stance as opposing crypto as it threatens their business.
- Sources have claimed that Paypal may launch a platform that allows the purchase and sale of cryptocurrencies in a crypto wallet.
Paypal and its subsidiary, Venmo have been rumored to be on the cusp of an association with Cryptocurrency. In the past, they have maintained their stance as opposing crypto as it threatens their business. However, they may be joining it to make a profit instead of losing in the competition.
PayPal Crypto wallet
Coindesk sources have claimed that Paypal may launch a platform that allows the purchase and sale of cryptocurrencies through a crypto wallet. It will also facilitate the storing of assets of customers by the payments provider. Essentially, a cryptocurrency exchange will launch.
Granted, the Cash App will be the biggest competitor, has launched a Bitcoin purchasing in 2018. The unique factor will be the already existing customers of Paypal. It has a trusted customer base, which will work as an untapped target audience for Bitcoin.
The anticipated, rapid adoption phase
With over 305 million active accounts registered with Paypal, there is a significant growth opportunity for Bitcoin (BTC). The CEO has planned to adopt an aggressive strategy to increase the registered accounts to over 52 million.
The constant increase in individual users of e-wallets indicates a market size that grows every quarter. If Venmo and its parent firm were to get 10% of the total users to use Bitcoin, the numbers would double. The adoption rate would be quite high due to the existing customer base.
The adoption rate may disrupt the other cryptocurrency platforms due to the convenience of using Paypal.
Paypal would have to create proper security options and make them known to its users. The biggest risk, according to people, is the security of information and assets when it comes to Bitcoin. If Paypal can create trust in the minds of the users, it will gain customers.
This association would be profitable for both parties. However, Paypal averts a risky competition and comes out with a profit, while Bitcoin gains users in large numbers. The truth of these rumors is not clear. If this is concrete information, assurances will be given by the company by the end of the year.