PayPal’s move is good for Bitcoin adoption, the payments giant in talks to buy crypto companies including BitGo

PayPal will support cryptocurrency as a funding source for 26 million merchants will likely benefit mass cryptocurrency adoption more than it will boost the payments firm’s bottom line, Morgan Stanley said, according to Coindesk.

“Assuming PayPal is able to scale its crypto trading activity to Square’s current level, it would only add (0.3%) of growth to PayPal’s ~$21.3 billion” revenue base for 2020, wrote the Morgan Stanley analysts. The reason is boosting crypto acceptance doesn’t necessarily mean greater transaction volumes.

Other upsides of supporting crypto include staying competitive with Square and attracting “a new user base” to PayPal, Morgan Stanley said.

PayPal in Talks to Buy Crypto companies Including BitGo, Bloomberg says

After the payments giant announced it’s entering the cryptocurrency market,  as Bloomberg reported, PayPal is exploring purchases of cryptocurrency companies including bitcoin custodian BitGo.

PayPal has been holding talks with BitGo, a company that helps investors store Bitcoin securely, and could reach a deal within weeks, the people said, asking not to be identified because the matter is private. Talks could still fall apart and PayPal could opt to buy other targets, Bloomberg added.

Palo Alto, California-based BitGo was founded in 2013 by Chief Executive Officer Mike Belshe. BitGo raised $58.5 million in 2018 at a $170 million valuation. BitGo is backed by investors including Goldman Sachs Group Inc., Craft Ventures, Digital Currency Group, DRW, Galaxy Digital Ventures, Redpoint Ventures, Valor Equity Partners and Founders Fund.

It couldn’t be learned how much PayPal would pay for BitGo if it goes ahead with the deal, Bloomberg said.

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The post PayPal’s move is good for Bitcoin adoption, the payments giant in talks to buy crypto companies including BitGo appeared first on AZCoin News.

PayPal will support cryptocurrency as a funding source for 26 million merchants will likely benefit mass cryptocurrency adoption more than it will boost the payments firm’s bottom line, Morgan Stanley said, according to Coindesk. “Assuming PayPal is able to scale its crypto trading activity to Square’s current level, it would only add (0.3%) of growth
The post PayPal’s move is good for Bitcoin adoption, the payments giant in talks to buy crypto companies including BitGo appeared first on AZCoin News.

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