PayPal cryptocurrency trading volume beyond expectations

[Daltonik]

In the fourth quarter, payment giant PayPal attracted 16 million new customers and processed payments worth $277 billion. According to CEO Dan Shulman, the company is actively investing in the cryptocurrency division, which more than met expectations.

PayPal's total revenue for the fourth quarter increased by 23% to $6.12 billion in the fourth quarter. The financial results were positively impacted by the support for cryptocurrencies, which appeared for PayPal customers in the United States on November 12.

PayPal's declares its uniqueness and therefore inevitably leads to profit, but whether this is really so in the end we will decide

Now: Centralization reports on profit and decentralization shows a growing volume and on which side you will decide

[1715491725]

1715491725

[1715491725]

1715491725

[1715491725]

1715491725

[samcrypto]

This only means to me that there's a great demand for a decentralized transactions and it can add profit to those companies who will start to adopt. Many companies should see this experience of Paypal and I'm sure it will continue to grow since many are trusting the platform and Paypal and they feel their security here. I'm not into Paypal since we also have our local wallet to transact, but to those who are using this for sure they are enjoying this services using their own cryptocurrency.

[oHnK]

From the initial steps Paypal expanding their business to Bitcoin has provided a very positive value for the price of Bitcoin, until now Paypal has proven a very good achievement by increasing revenue for transactions therein. I think this will give positive vibes to the current and future Bitcoin price. With the absorption of Bitcoin by Paypal, it will educate more users to get to know Bitcoin and receive the benefits of this digital Gold. And it is possible that Paypal's steps will be followed by many other large companies, and educate more ordinary people to get closer to Bitcoin, so that it will eventually be absorbed as a legalized currency by all countries. Just a hope.

[ChiBitCTy]

I meant to jump on this earnings call. I also wish they would have been more specific about how much they actually made, or how much business they actually did dealing with cryptocurrency directly.  I read some of the highlights and I saw how bullish they were on bitcoin and crypto, and as much as I absolutely hate this company, I know that it is good for the mass adoptions for bitcoin and I couldn't be happier about that. 

I saw Visa's CEO on CNBC yesterday and he was very high on bitcoin and crypto himself..

It's a new day boys and girls!

[LeGaulois]

Don't get it wrong guys, but Paypal doesn't really care about Bitcoin. The only thing that matters is the profit it can bring to the company. They just noticed Bitcoin could be a good cash cow and there is a ton of money to make out of it.

I didn't read the whole PDF but there is a need to make things separate. What comes from the addition of Bitcoin and what comes from the other part. Do you think the percentage increase is only due to the addition of Bitcoin? Not at all.
Even the free cash flow decreased starting at Q2 2020, the same for the number of active accounts but not the number of payment transactions.

What does it mean? It means there is the same number of people using Paypal but they are using it more frequently. Hence the profits' increase.
But why?
Because online shopping has increased drastically in the last year with covid and as Paypal is the most popular payment method people use, it makes sense.
Amazon has also doubled its profits but they have not added Bitcoin.

This only means to me that there's a great demand for decentralized transactions

For your information, there is no decentralization in Payal. People are simply buying a token backed by BTC, they don't own BTC, Paypal does

[dothebeats]

It would be best if PayPal would allow people who trade on their platform to actually get the coins that they 'assume' is theirs. But unfortunately, if that happens we know that there'll be a shortage of coins, so right now what people are actually holding is the promise of PayPal that they are indeed trading bitcoins and not some privately-issued air that they aren't getting no matter what.

PayPal's declares its uniqueness and therefore inevitably leads to profit, but whether this is really so in the end we will decide

I don't think PayPal is unique; I just think that they are the first giant in the institutional side of things to make these things possible to the retail investor.

[crwth]

I think this is the result because most of the people who have heard of Bitcoin and want to be part of it has no time to understand and learn about how you can get involved in crypto. So if they are PayPal users themselves, it's relatively easy to be participating in it with just a few clicks on your mobile phone or browser. It's just that it makes the access easy, and they can call themselves now crypto users.

That's probably the reason why there's an increase in volume, and of course, the price also has its parameter. Hopefully, we will see a retrace so we could accumulate more.

[electronicash]

$6.12 billion in the last q4 last year! congrats.

i took a peek at the pdf file but it bore me. after all the 34 pages of pdf, we still can't identify how much BTC they have collected since the time they joined the fintech investments. since they openly admit they are actively investing it would be interesting to see how much they have. and will they soon allow their users to withdraw BTC from Paypal platform.

[boyptc]

Whether they have volumes of customers coming into them and getting attracted to their new feature. It's still not an actual bitcoin that they sell.

PayPal got the formula of it and they really took the attention of everyone which was effective.

[avikz]

Can someone answer the below questions??

1. Are we allowed to withdraw the cryptocurrency to our own wallet after purchasing it from Paypal?
2. Can we deposit cryptocurrency to Paypal which was not purchased from them and sell them to Paypal?

As far as I know, we are not allowed to do such operations but if things have changed, can anyone let us know?

[so98nn]

Amazing statistics 📈 and great initiative by PayPal. Elon is really going crazy about the bitcoin and crypto space. He has great plans ahead and I’m pretty sure PayPal is gonna be next big reason people will see bitcoins upsurge. PayPal seems to be taking up the pace at faster rate than any institutional investment firm might have thought earlier.

Looking at the transaction history PayPal might have broken the record of grabbing more customers in short period of time.

They will soon launch services like crypto cards, PayPal crypto ATM, and who knows a physical crypto bank which is decentralised. It’s Elon you know!! Anything is possible now.

[adzino]

Amazing statistics 📈 and great initiative by PayPal.

Great initiative? You mean paypal owning all the bitcoins, where as their users don't actually "own" the coins? How is that a great initiative? Their users pay for the coins, but it is paypal who keeps it. Users are not allowed to withdraw the coins (since they don't own it) or spend it anywhere (unless the merchant accepts paypal as payment). So how is this centralized totally controlled institution has taken a great step?

Elon is really going crazy about the bitcoin and crypto space. He has great plans ahead and I’m pretty sure PayPal is gonna be next big reason people will see bitcoins upsurge.

What does Elon has to do with paypal?

They will soon launch services like crypto cards, PayPal crypto ATM, and who knows a physical crypto bank which is decentralised. It’s Elon you know!! Anything is possible now.

Lol, you are expecting a financial institution like Paypal to create a "Decentralized" physical crypto bank? Keep dreaming. Again, what Elon? You do know that he has nothing to do with Paypal anymore.

[Vishnu.Reang]

The relationship between PayPal and Bitcoin is a mutually beneficial one, with both sides benefiting out of it. Sadly, it once again confirms the perception that a lot of people are staying away from Bitcoin due to the difficulty in purchasing and storing the coins. PayPal offered an opportunity to purchase/store BTC easily and we can see that millions of users have made use of that option.

This is something that the community needs to think about. In order to increase the acceptability and adoption, we need to make Bitcoin more friendly to the less tech savvy users. I am not saying that we need to implement any fork. Rather than that, we need to come up with solutions that will make storage of cryptocurrency easier and more secure. If PayPal can do that, then why can't others?

[davis196]

This only means to me that there's a great demand for a decentralized transactions and it can add profit to those companies who will start to adopt. Many companies should see this experience of Paypal and I'm sure it will continue to grow since many are trusting the platform and Paypal and they feel their security here. I'm not into Paypal since we also have our local wallet to transact, but to those who are using this for sure they are enjoying this services using their own cryptocurrency.

1.Yeah,but Paypal is centralized and will always remain centralized.
Adopting cryptocurrencies doesn't mean that Paypal will become decentralized.They might become "pseudodecentralized" for the sake of marketing and making the company look cool in the eyes of naive crypto enthusiasts.

2.They feel secure using Paypal?Are you kidding me?Having you own crypto in your own cold wallet and storing your own private keys is way more secure than having trust in a company that can block/limit the money in your account for any reason.

[jseverson]

Can someone answer the below questions??

1. Are we allowed to withdraw the cryptocurrency to our own wallet after purchasing it from Paypal?
2. Can we deposit cryptocurrency to Paypal which was not purchased from them and sell them to Paypal?

As far as I know, we are not allowed to do such operations but if things have changed, can anyone let us know?

Can I transfer Cryptocurrency into and out of PayPal?
Currently, you can only hold the Cryptocurrency that you buy on PayPal in your account. Additionally, the Cryptocurrency in your account cannot be transferred to other accounts on or off PayPal.

So still no, but it seems like they plan on allowing users to spend crypto in the future based on the way they phrased these answers (emphasis mine):

Can I use Cryptocurrencies to pay or send money with PayPal?
At this time, you cannot use Crypto as a way to pay or send money on PayPal.
 
Can I use my Cryptocurrency balance as a funding source for my purchases?
No, not at this time.

It would be best if PayPal would allow people who trade on their platform to actually get the coins that they 'assume' is theirs. But unfortunately, if that happens we know that there'll be a shortage of coins, so right now what people are actually holding is the promise of PayPal that they are indeed trading bitcoins and not some privately-issued air that they aren't getting no matter what.

I'm not sure the SEC will allow them to get away with something like that, or if they would even dare. It also seems that Paxos is handling the trading under the hood, so I wouldn't be sure they're trading air. It would absolutely be huge if they allowed people to withdraw crypto, but they're a payments service primarily (meaning they're not trying to be a crypto exchange), so I wouldn't count on it.

[momchilandonov]

I still didnt get why people are buying crypto on paypal if you cant withdraw it from there

[rdbase]

Don't get it wrong guys, but Paypal doesn't really care about Bitcoin. The only thing that matters is the profit it can bring to the company. They just noticed Bitcoin could be a good cash cow and there is a ton of money to make out of it.

I didn't read the whole PDF but there is a need to make things separate. What comes from the addition of Bitcoin and what comes from the other part. Do you think the percentage increase is only due to the addition of Bitcoin? Not at all.
Even the free cash flow decreased starting at Q2 2020, the same for the number of active accounts but not the number of payment transactions.

What does it mean? It means there is the same number of people using Paypal but they are using it more frequently. Hence the profits' increase.
But why?
Because online shopping has increased drastically in the last year with covid and as Paypal is the most popular payment method people use, it makes sense.
Amazon has also doubled its profits but they have not added Bitcoin.

This only means to me that there's a great demand for decentralized transactions

For your information, there is no decentralization in Payal. People are simply buying a token backed by BTC, they don't own BTC, Paypal does

These are my sediments exactly as you have stated towards with what people perceive as paypal accepting bitcoin on their platform.
You don't actual own the cryptocurrency when you purchase it from them. They hold all of it and you can not remove it from their wallet.
Opposite of decentralized.
And what people who have already owning their bitcoin on there fail to realize is:
They can change the rules and regulations whenever they want. They have you once you agree to those terms and conditions and they can be altered the very next day. I am say this right after receiving an email  stating they have changed their legal policies. Second one received in the past six months.
So just be wary of this the next time you log into your paypal account.
Your paypal bitcoin might just be more fancy internet money then you think.
*Poof*

[Reid]

Looks like they made a good choice. 
I bet every employee of Paypal now is getting their bonuses. 

This also proves how many people out there are having a hard time buying cryptocurrencies before.
We all saw that with different threads they make in this forum looking for other options.
But now, you don't see much of that question anymore. Yeah, Paypal made it happen.
Although, I am still in doubt about security issues. I might just use it to buy and get out. Don't stay.

[Vishnu.Reang]

Looks like they made a good choice. 
I bet every employee of Paypal now is getting their bonuses. 

This also proves how many people out there are having a hard time buying cryptocurrencies before.
We all saw that with different threads they make in this forum looking for other options.
But now, you don't see much of that question anymore. Yeah, Paypal made it happen.
Although, I am still in doubt about security issues. I might just use it to buy and get out. Don't stay.

For those who want to invest in cryptocurrency, with small amounts such as $50 or $100, PayPal is a good option. There are lot of such people out there, who are using PayPal right now. They don't want to get in to the trouble of creating a wallet by themselves and then going through all the security protocols. They would rather prefer PayPal doing it for them. It is just like storing your coins in an exchange wallet, but in this case PayPal is having a very good reputation and therefore the users think that they don't have to worry about someone stealing their coins or the exchange vanishing overnight.

However, those who want to not just invest, but also use their cryptocurrency, PayPal is not the place to rely on. They have announced that by mid-2021 users in the US will be able to make payments using PayPal BTC and withdraw their PayPal BTC to personal wallets. But until these features are available, I am not going to trust them.

[Coin_trader]

I still didnt get why people are buying crypto on paypal if you cant withdraw it from there

Simple. Because the value of BTC there is same with the real BTC so if you want to invest in BTC, they can simply buy and flip there without moving it outside paypal. PayPal user do not used to store there funds in there so it's same on BTC. Most of people that buying BTC in PayPal are just want to get profit on Bitcoin volatility since they are not a bitcoin enthusiasts.