Why You Shouldn’t Use PayPal’s New Bitcoin Wallet
PayPal is not interested in buying cryptocurrency
PayPal CFO says the company is unlikely to invest in cryptocurrencies.
PayPal is unlikely to buy digital currencies like bitcoin, although the company does see huge opportunities in digital wallets..
Speaking Thursday on CNBC in the program «Crazy money», CFO PayPal John Rainey said the payment giant is not interested in buying cryptocurrency, instead opting to invest in services that complement the platforms it offers.
«We are probably not going to invest corporate money in such financial assets, – he said in response to a request from the host of the show. Jim Cramer, – but we want to capitalize on this growth opportunity that lies before us».
The company has acknowledged that it considers the digitalization of currencies to be inevitable. In December, the CEO of PayPal Dan Shulman named digital wallets «natural complement to digital currencies» and said the company serves 360 million digital wallets.
PayPal has access to the cryptocurrency market. In October, the company announced it would allow users to buy, store, and sell cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. Users can also shop with digital coins at the PayPal retail network.
Venmo, a mobile wallet owned by PayPal, is expected to start offering the same services in the first half of this year. Opportunities will also be extended to international markets.
PayPal plans to invest its money in companies that provide «additional assets for our platform», which will help stimulate growth, Rainey said. The company also announced on Thursday that it will introduce its services to buy, sell and store cryptographic services in the UK in the near future..
«The types of services we provide such as “buy now, pay later” [and] cryptocurrency as an example – even standalone QR codes are the types of things we want to keep investing in, whether organically or even inorganically when we see opportunities in the ecosystem», – he explained.
«Buy now, pay later» – is a point-of-sale loan program that works the same way as deferred payment, allowing shoppers to pay for products in installments with no interest or commissions.
Crypto-related comments appear due to the revitalization of crypto markets this year. Tesla made a splash earlier this week when it announced that it acquired $ 1.5 billion worth of bitcoins and will also begin accepting the currency as a form of payment from customers. This followed a surge in interest in dogecoin, the digital coin that Tesla CEO Elon Musk blessed on his twitter page.
Tesla’s move to invest in bitcoin will create a buzz in the investment community if other companies follow in the footsteps of the electric vehicle maker. Earlier Thursday, the CEO of Uber Dara Khosrowshahi said the topic was discussed, but the company ultimately refused to invest in digital currency.