Paypal & Square are Doubling Down on Crypto Gains
Comparing cryptocurrency-specific Mentions for Paypal (PYPL) and its P2P payment app ‘Venmo’ against those of Square (SQ) and its P2P platform ‘Cash App’, it’s not hard to see why both companies are ramping up their crypto offerings.
Both companies are focusing on the future of crypto:
Paypal’s CEO teased a “next generational digital wallet” coming in Q3, as well as pointing to cryptocurrency as a key growth engine for the company.
SQ recently launched the Cryptocurrency Open Patent Alliance (COPA), an open-source foundation for crypto patents to protect the community. Additionally, the company holds 8,027 Bitcoins.
Square (and CEO Jack Dorsey) were early adopters, launching bitcoin trading on Cash App in 2018. Since then, they’ve massively expanded the Cash App’s cryptocurrency offerings to massive success — Last quarter, SQ reported a +266% YoY revenue improvement, driven by a +666% YoY increase in Cash App sales (of which 527% came from Bitcoin trading).
Although Paypal has been a step behind in terms of rolling out crypto services, they’ve experienced undeniable success. The launch of “buy-hold-sell” functionality on Venmo puts the platform in direct competition with the Cash App, and Venmo looks like it’s gaining steam.
SQ and PYPL have both thrown their lot in with the cryptocurrency markets, and their continued success will rely heavily on the success of Bitcoin.