PayPal Doesn’t Bring Users To The Bitcoin Network – Bitcoin Magazine

News broke on the morning of October 21 2020, that PayPal would grant its users the ability to purchase, sell and hold bitcoin within its app.

PayPal’s stock price rose 4.65 percent on the news, and the bitcoin price continued its rise from $11,400 to $12,700 by midday.

There is no denying that PayPal is a monster in the mobile and digital payment processing space. Since the lockdowns stemming from the spread of COVID-19, consumers and businesses are transacting with cash less often, and more often paying for goods with 1s and 0s from their mobile devices. It only makes sense that PayPal would allow its users the ability to buy and own the world’s first (to some enthusiasts, the world’s only) digital and decentralized global currency: bitcoin.

But what does PayPal bring to the table for Bitcoin that Jack Dorsey’s company — Square — hasn’t already with its rapidly-growing financial app Cash App? Cash App has offered customers bitcoin since the summer of 2019, and the platform has seen incredible growth.

“Cash App delivered $1.2 billion in revenue alone and $281 million of gross profit during the second quarter, an increase of 361% and 167% year-over-year, respectively,” according to ZDNet. “In total, Cash App generated $54 million in transaction-based revenue over the quarter.”

Additionally, Cash App’s parent company, Square, announced on October 8, 2020, that it had allocated about 2 percent of the cash on its balance sheet to bitcoin — a total investment of $50 million or 4,708 bitcoin at an average price of roughly $10,620. This investment has grown by over 15 percent since October 8 and is worth more than $57 million at the time of this writing.

Still, Cash App pales in comparison to PayPal, as it has only 30 million active users, Roughly 10 percent of PayPal’s monthly customer base.

But this isn’t the only difference between Cash App and PayPal.

The most noticeable difference in the two companies’ Bitcoin offerings is in PayPal…

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