Key Points
- PayPal seems to be carving out a dominant edge in crypto.
- 3 new approaches of the financial tech company show that PayPal could become a crypto super app.
PayPal seems to be taking the necessary steps to become a crypto super app. Its latest moves show that the financial tech company might be building a strong crypto path.
3 Reasons Why PayPal Could Become the Next Crypto Super App
Here are the main reasons why PayPal could be on the path of shaping a strong crypto approach:
1. ETH addresses are coming to PayPal/Venmo
Recently, Ethereum Name Service (ENS) announced that payment giants PayPal and Venmo have integrated support for ENS domain names. This integration enables users to employ the platforms to transmit crypto assets to an ENS address.
ENS recently shared a post via their X account, announcing that PayPal and Venmo both support ENS domains. According to the team behind the project, the new feature brings the power of ENS to millions, making crypto transfers easier and more secure than ever. The move reportedly starts in the USA.
In other words, PayPal and Venmo’s US-based users, about 278 million and 77.7 million respectively, will now be able to send platform-supported Ethereum-based tokens to ENS addresses.
This is a huge number of new potential users considering that Ethereum had a total of almost 14 million active addresses in August.
For instance, as of August 9, the number of active addresses on Ethereum was over 400,000, according to data from Glassnode.
2. PayPal is Growing its PYUSD Stablecoin Fast
PYUSD stablecoin recently peaked at more than $1 billion in market cap on September 10, just 383 days after launch.
Now, according to official data from defillama, the total market cap of PYUSD is almost $860 million.
3. Enabling Crypto at Checkout for US-Based Merchants and Consumers
Also, for US customers looking to spend their crypto gains online, PayPal offers assistance and allows them to pay with crypto across their network of 10.9 million US-based online merchants.
Customers can simply click on Pay with PayPal at checkout, and select the token that they want to spend. PayPal converts it into fiat and pays merchants in USD.
By making users’ transition to crypto easy, while integrating PYUSD at the backbone of its system, PayPal can become a strong crypto app, while making a lot of money as well.
PayPal and Venmo can convert parts of their combined 355.8 million user base into PYUSD holders, competing with Tether (USDT)’s 6 million total token holders in the process.
According to the latest reports, Tether saw more profit than BlackRock in 2023, with $6.2 billion in profits compared to $5.5 billion.
