PayPal's Q3 earnings call concluded, and as they had announced crypto features, analysts were excited about this offering and PayPal announced lots of new plans they have for crypto:Biggest one imo: Paypal says they have their NYDFS BitLicence and they enable crypto to be used as a funding option to shop across all 28 million merchants! CEO says this will fundamentally bolster the use of cryptocurrencies.Quote from Dan Schulman, Paypal's President and CEO:Enabling somebody who holds a cryptocurrency in a PayPal account to instantaneously transfer that crypto into fiat currency at a step rate, so volatility is taken out of the equation, no incremental fees charged for them to do that transaction from crypto into a fiat. And then immediately settle in fiat with all $28 million of our merchants at our current take rates and so you have no additional integration needed at any of our merchants. And this is just an elegant way of using cryptocurrencies as a funding mechanism.Paypal says this has a lower cost for them compared to funding accounts with NACH, etc.Paypal plans to dramatically change how people use both paypal as well as venmo. Crypto seems to be a big part of this. Venmo will get crypto features in the first half of 2021. Paypal will also expand internationally and enable crypto across different geographies.They have only rolled out crypto to 10% of users, but even among these users they have seen more interest in people opening the apps just to check the prices:Now we've only rolled this out to 10% of our base. We did that a couple of days ago, but our waiting list was 2 times to 3 times of what our expectations were. We're going to take up our $10,000 limit per day to $15,000 per day based on the demand that we're seeing and we'll roll out to 100% in the U.S.We're seeing people who've already bought crypto, open their wallets several times a day to check on what's happening with their crypto investments.Regarding Crypto as a whole, and CBDC's:My conversations with central banks, with the regulators, with a number of folks in the crypto field, there's no question that digital currencies are going to be rising in importance, having increasing functionality and increasing prominence. CBDCs, from my perspective and all my conversations, are a matter of when and how they're done, not if. And I think that our platform, with its digital wallets and the scale that we have right now, can help shape the utility of those currencies.Full transcripts: https://ift.tt/3enAq3Q
Submitted November 03, 2020 at 06:16PM
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