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PayPal (PYPL) Invests in TaxBit, Boosts Cryptocurrency Presence
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PayPal (PYPL - Free Report) is leaving no stone unturned to bolster its presence in the promising cryptocurrency market.
This is evident from the latest investment of PayPal’s venture arm in U.S.-based tech startup TaxBit, a firm that provides cryptocurrency tax automation software.
Reportedly, other companies namely Coinbase, and Winklevoss Capital have also invested in TaxBit.
Founded in 2017, Taxbit’s software enables consumers and businesses to calculate the taxes owed on their cryptocurrency holdings.
As bitcoin and other virtual currencies are treated as property for tax purposes in the United States, Taxbit can help people to optimize taxes on these holdings.
We note that the move will enhance PayPal’s position in the cryptocurrency market.
Cryptocurrencies, which hold the potential to revolutionize the process of peer-to-peer and remittance transactions, are gaining significantly from a decentralized system, low fee, transparency of distributed ledger technology, protection from consumer charge backs, and quick international transfers.
Additionally, the growing demand for alternative currency as a result of the ongoing pandemic remains a tailwind.
All these factors are driving growth in digital currency (especially bitcoin) transactions throughout the world. Per a report from Statista, the number of daily bitcoin transactions at third-quarter 2020 end exceeded 351 million, jumping significantly from around 200 million in first-quarter 2016.
Further, a report from Fortune Business Insights shows that the global cryptocurrency market is expected to hit $1.8 billion in 2027 from $754 million in 2019, witnessing a CAGR of 11.2%.
PayPal is well-poised to reap benefits from the rapidly growing market on the back of its latest move and strong focus on expansion of its bitcoin facilities.
Bottom Line
In this data-driven world, blockchain-backed cryptocurrency space has gained solid traction on the heels of an increasing bitcoin adoption, the most popular and widely used digital currency.
Companies like Square (SQ - Free Report) , Intel (INTC - Free Report) , Advanced Micro Devices (AMD - Free Report) and NVIDIA are all making efforts to strengthen presence in this market.
Coming to PayPal, the company helps merchants to accept crypto payments via partnerships with three major bitcoin payment processors — BitPay, GoCoin and Coinbase.
Further, the payment processing company recently launched a service that allows its customers to buy, hold and sell cryptocurrency such as Bitcoin and Ethereum directly from their PayPal and Venmo app.
Also, the company announced its intentions to enable cryptocurrency as a funding source across its 26 million merchants worldwide.
We note the latest investment will continue to aid PayPal in gaining momentum among customers.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
PayPal (PYPL) Invests in TaxBit, Boosts Cryptocurrency Presence
PayPal (PYPL - Free Report) is leaving no stone unturned to bolster its presence in the promising cryptocurrency market.
This is evident from the latest investment of PayPal’s venture arm in U.S.-based tech startup TaxBit, a firm that provides cryptocurrency tax automation software.
Reportedly, other companies namely Coinbase, and Winklevoss Capital have also invested in TaxBit.
Founded in 2017, Taxbit’s software enables consumers and businesses to calculate the taxes owed on their cryptocurrency holdings.
As bitcoin and other virtual currencies are treated as property for tax purposes in the United States, Taxbit can help people to optimize taxes on these holdings.
We note that the move will enhance PayPal’s position in the cryptocurrency market.
PayPal Holdings, Inc. Price and Consensus
PayPal Holdings, Inc. price-consensus-chart | PayPal Holdings, Inc. Quote
Cryptocurrency Market Holds Promise
Cryptocurrencies, which hold the potential to revolutionize the process of peer-to-peer and remittance transactions, are gaining significantly from a decentralized system, low fee, transparency of distributed ledger technology, protection from consumer charge backs, and quick international transfers.
Additionally, the growing demand for alternative currency as a result of the ongoing pandemic remains a tailwind.
All these factors are driving growth in digital currency (especially bitcoin) transactions throughout the world. Per a report from Statista, the number of daily bitcoin transactions at third-quarter 2020 end exceeded 351 million, jumping significantly from around 200 million in first-quarter 2016.
Further, a report from Fortune Business Insights shows that the global cryptocurrency market is expected to hit $1.8 billion in 2027 from $754 million in 2019, witnessing a CAGR of 11.2%.
PayPal is well-poised to reap benefits from the rapidly growing market on the back of its latest move and strong focus on expansion of its bitcoin facilities.
Bottom Line
In this data-driven world, blockchain-backed cryptocurrency space has gained solid traction on the heels of an increasing bitcoin adoption, the most popular and widely used digital currency.
Companies like Square (SQ - Free Report) , Intel (INTC - Free Report) , Advanced Micro Devices (AMD - Free Report) and NVIDIA are all making efforts to strengthen presence in this market.
Coming to PayPal, the company helps merchants to accept crypto payments via partnerships with three major bitcoin payment processors — BitPay, GoCoin and Coinbase.
Further, the payment processing company recently launched a service that allows its customers to buy, hold and sell cryptocurrency such as Bitcoin and Ethereum directly from their PayPal and Venmo app.
Also, the company announced its intentions to enable cryptocurrency as a funding source across its 26 million merchants worldwide.
We note the latest investment will continue to aid PayPal in gaining momentum among customers.
Zacks Rank
PayPal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>