Are Cashless Transactions Actually Good for PayPal?

“The really important thing is to take a step back and see that there is a tremendous rise in all forms of digital payment right now”. The CEO of PayPal (PYPL), Dan Schulman said, 40%-70% of consumers want to use a ‘cashless’ method in all their transactions not only in malls, restaurants but also in Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. PayPal is known for operating an online payment system that supports money transfers in majority of countries around the world. There are 26 million Paypal merchants up to date.

“Not only would we allow people to buy, sell, and hold cryptocurrencies but very importantly, they could use those as a funding source… to buy any of our 28 million merchants,”. According to Schulman, PayPal is beginning to add more functionality to cryptocurrencies. “The promise is to use a modern technology to enhance the utility of payments,” said Schulman in an interview with CNBC.

“What we’re most excited about is enabling people to take that cryptocurrency and effectively turn it into a currency to be able to use it in any of our 28 million merchants,” said Dan Schulman while also stating that they’ll do these things without any volatility. “We’ll take that crypto, and convert it to fiat currency so they can immediately accept it”.

He concluded by saying that the time now signals the start of the use of more digital ledger technologies to enhance the very utility of payments, to have more people included in the financial system, to complete transactions quickly, and to do it less expensively.

Paypal is among the 30 most popular stocks among hedge funds.