Top 4 Businesses PayPal Could be Looking to Acquire for its Bitcoin Venture

Top 4 Businesses PayPal Could be Looking to Acquire for its Bitcoin Venture

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The talk of the town is PayPal’s planned support for Bitcoin. As part of this vision, the payment processor shows an interest in acquiring specific companies. Below are some examples of which type of firms PayPal may want to take a closer look at. 

BitPay

Even though there is no reason for BitPay to sell to the highest bidder, one never knows what PayPal can put on the table. Not only is the payment processor entering the Bitcoin industry, but its functionality is also limited. Users cannot use their purchased BTC to make transactions or move funds. Acquiring the biggest Bitcoin payment processor can be of great interest in that regard. 

Branding-wise it is not difficult to see the appeal. PayPal and BitPay almost seems like a match made in heaven. It can give PaPpal the Bitcoin processing tools needed to become a more active part of the network. At the same time, it will centralize a big aspect of this ecosystem, which is not ideal. 

Purse

For years, people have wondered why Amazon won’t allow PayPal as a payment method. The large amount of fraudulent transactions and chargeback fraud may have something to do with that. At the same time, integrating this option would make a lot of sense, yet it remains unlikely.

By acquiring Purse – a company that has seen financial hardship recently – an interesting development occurs. PayPal gains an indirect presence on Amazon through Purse, and expands the appeal for Bitcoin at the same time. Whether the Purse-native discounts will remain in effect, is a different matter altogether. 

Paxos Trust Company

To forage into the cryptocurrency world, PayPal is partnering Paxos Trust Company. However, it is not unlikely a proper acquisition of this company will occur in the near future. Paxos’ services and solution can enhance PayPal’s presence in the market, including stablecoin support, custodial services, and so forth.

Moreover, Paxos Trust Company is working with the likes of Revolut as well. Being able to tap into cryptocurrency and as well as “neo banking” would be a double-whammy for PayPal. At the same time, there may be other companies in the same industry that have a bigger appeal. Starting small, with Paxos, may be an appealing offer. 

PayPal as A Crypto-friendly Bank

Perhaps the biggest missing piece of the puzzle for PayPal is acquiring a crypto-friendly bank. More specifically, there are still many financial institutions that won’t allow users to deal with cryptocurrencies. If PayPal’s venture into Bitcoin proves successful, that may become problematic for the payment processor itself.

As such, they can offset this potential risk by becoming their own crypto bank. A few institutions have a very open mind toward Bitcoin and Ethereum. Finding a bank willing to get on good terms with PayPal, is a very different obstacle. Eventually, the company can begin issuing its own crypto payment cards too, among other things.

The post Top 4 Businesses PayPal Could be Looking to Acquire for its Bitcoin Venture appeared first on CryptoMode.

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