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Does Crypto-Offering Hold the Key to PayPal Stock's Future?

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Key Takeaways

  • PayPal users can buy, sell, transfer and hold multiple cryptocurrencies directly on its platform.
  • PYUSD stablecoin is now live on Ethereum, Solana, Arbitrum Layer-2, and Stellar for faster transactions.
  • "Pay with Crypto" lets U.S. merchants accept 100 cryptocurrencies with instant conversion to fiat or PYUSD.

PayPal Holdings (PYPL - Free Report) has established itself as a leader in digital payments. It has been enhancing its platform with a robust suite of crypto offerings built directly into the PayPal app and website. Users in the United States and selected global markets can buy, sell, transfer, and hold Bitcoin, Ethereum, PayPal USD (PYUSD) and more, making PayPal an accessible entry point for crypto adoption.

Among the marquee products is PYUSD, PayPal's US dollar stablecoin pegged 1:1 to USD. PYUSD is not only available on Ethereum and Solana, but is now also accessible on blockchains like Arbitrum Layer-2, as well as on Stellar, facilitating faster and low-cost transactions. In April 2025, PayPal unlocked annual rewards to users for holding its stablecoin PYUSD on PayPal or Venmo wallets.

Offering more tokens on the PayPal and Venmo platforms provides users with greater flexibility, choice, and access to digital currencies. As part of such efforts, in April 2025, the company added two additional cryptocurrencies, Chainlink (LINK) and Solana (SOL), to its PayPal and Venmo platforms.

Another breakthrough is the "Pay with Crypto" feature, which was launched in July 2025. This feature lets U.S. merchants accept more than 100 cryptocurrencies, with instant conversion to fiat currency or PayPal’s stablecoin, PYUSD. This streamlined experience allows direct selection of crypto for payment, with PayPal handling the conversion and settlement.

With seamless usability, transparent stablecoin and continuous expansion into promising new tokens, PayPal gives users the power and flexibility to navigate the future of digital currency securely and effortlessly.

How Are Block and Coinbase Global Expanding in this Space?

Block, Inc. (XYZ - Free Report) has made major progress in crypto’s push into the financial mainstream. Block has integrated Bitcoin through its Cash App, enabling peer-to-peer transactions and investing. It invested heavily in BTC treasury holdings and rolled out Bitcoin lending pilot programs. Its Square Crypto initiative focuses on Bitcoin developer grants and Lightning Network adoption to boost Bitcoin’s payment utility.

Coinbase Global (COIN - Free Report) is the largest U.S. crypto exchange, which allows users to trade cryptocurrency, earn rewards by staking and provide secure storage services. It launched a Payments platform, including stablecoin support. It waived fees for PYUSD, expanded institutional services and invests in Layer 2 scaling (like Base) to bolster real-world crypto use.

PYPL’s Price Performance, Valuation and Estimates

Shares of PayPal have declined 21.6% year to date, underperforming both the broader industry as well as the S&P 500 Index.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

From a valuation standpoint, PayPal shares are trading cheap, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 11.88X compared with the Zacks Financial Transaction Services industry’s 21.43X.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

PayPal’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2025 EPS has been revised upward over the past week. The Zacks Consensus Estimate for 2025 EPS suggests 12.5% growth year over year.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

PayPal currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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