PayPal (PYPL) has launched a new peer-to-peer cryptocurrency payments service that allows users in the U.S. to send Bitcoin (BTC) and Ethereum (ETH) to one another using the company’s platforms and apps.
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PayPal customers can also send each other the company’s PYUSD stablecoin and other digital assets using the PayPal and Venmo platforms, as well as various crypto-compatible digital wallets worldwide. The peer-to-peer crypto payments are being launched along with “PayPal links,” a tool that lets users generate a one-time personalized link to send or request money.
The links can be dropped into text messages, chats and email, embedding payments into everyday conversations. Personal transfers between friends and family remain exempt from U.S. tax reporting requirements, meaning that financial gifts, reimbursements, and shared expenses won’t generate tax forms even if cryptocurrencies such as BTC are involved in the transaction.
‘PayPal World’
The peer-to-peer crypto payments are also part of “PayPal World,” the company’s new interoperability initiative aimed at connecting the largest digital wallets and payment systems across the globe. Peer-to-peer payments are a key growth driver for PayPal, with consumer payment volume climbing 10% in the second quarter of this year from the same period in 2024.
PayPal is aggressively growing its cryptocurrency offerings as it strives to attract customers and grow its market share in the highly competitive payments and financial technology (fintech) sectors. In July of this year, PayPal expanded its crypto payment offerings for U.S. merchants as part of its push into global crypto payments.
Is PYPL Stock a Buy?
The stock of PayPal has a consensus Moderate Buy rating among 25 Wall Street analysts. That rating is based on nine Buy, 14 Hold, and two Sell recommendations made in the last three months. The average PYPL price target of $83.65 implies 25% upside from current levels.
