PayPal (PYPL) Integrates With MetaMask, Boosts Crypto Efforts
PayPal PYPL joined forces with ConsenSys in a bid to expand its offerings in the booming cryptocurrency space and expand its customer reach.
Per the terms, PayPal has been added as an option for cryptocurrency transactions to ConsenSys’ MetaMask, which is a digital cryptocurrency wallet.
Notably, users of MetaMask will now be able to buy and transfer the second-most-popular cryptocurrency called Ether seamlessly by just tapping the “buy” button and logging into their PayPal accounts.
The underlined integration will aid MetaMask in expanding its reach to customers using Web3 applications like play-to-earn games and metaverse applications, among others.
Similarly, PayPal will also be able to gain traction among Web3 application users, whose number is rising rapidly.
Currently, the PayPal option within MetaMask is available to selected U.S. users. The feature will be rolled out eventually across the United States.
PayPal Holdings, Inc. Price and Consensus
PayPal Holdings, Inc. price-consensus-chart | PayPal Holdings, Inc. Quote
Growing Crypto Efforts
The latest move bodes well for the company’s strengthening crypto initiatives.
Apart from the latest move, PayPal offers a feature called crypto on Venmo, which lets Venmo customers buy, hold and sell cryptocurrency directly within the Venmo app. Customers can also check cryptocurrency trends from the app.
Further, the company offers its cryptocurrency service in the United Kingdom, which allows users to buy, hold and sell digital currencies like bitcoin, bitcoin cash, Ethereum and Litecoin directly from their PayPal accounts.
PayPal’s acquisition of a digital asset security technology provider — Curv — remains noteworthy.
The unveiling of a feature called Checkout with Crypto, which allows customers to seamlessly convert their cryptocurrency holdings into fiat currency at the checkout, is another positive.
With all these endeavors, PayPal remains well-poised to penetrate the booming cryptocurrency market rapidly amid the pandemic, which has highlighted the importance of digital currency transactions.
Per a report by Grand View Research, the global cryptocurrency market is expected to witness a CAGR of 12.2% between 2022 and 2030.
Competitive Scenario
We note that the latest move, along with the above-mentioned efforts, is likely to strengthen PayPal’s competitive position against one of its biggest peers, Block SQ.
Block facilitates the buying and selling of bitcoins via its Cash App. It also intends to develop a bitcoin mining system, with the help of which it strives to carry out the processes of mining, maintaining, setting up and purchasing bitcoin efficiently.
Apart from Square, Shopify SHOP is also leaving no stone unturned to gain a strong foothold in the cryptocurrency space.
Shopify allows its merchants to accept payments in bitcoin, Litecoin, Ethereum and many other cryptocurrencies. It recently took a step further in the crypto market by making its platform NFT-enabled, which allows users to mint and trade collectibles.
Nevertheless, PayPal’s strong crypto initiatives and the growing crypto volume are likely to strengthen its position in the intensifying cryptocurrency battle against the above-mentioned companies.
Zacks Rank & Other Stocks to Consider
Currently, PayPal carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector can consider a better-ranked stock like Arista Networks ANET, which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has lost 8.9% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 17.5%.
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