In Brief: PayPal has an implausible structure that helps the continuation of free cash flow and also has accustomed assets with a fairly large number of net cash.

It is argued the current cryptocurrencies, especially Bitcoin, present benefits and opportunities rather than danger to the already established digital payment entities such as PayPal.

PayPal’s growth rate high enough to restore his business within several months even after big hits like the failure of the deal between eBay that was going to begin in 2023.

PayPal believes the industrious area is big enough for all of the companies to exist and continue their growth.

While PayPal can still be considered as a long-term option for the escalating e-commerce and technologies of online payment, Bitcoin and its blockchain technology has swept people off their feet. However, the Bitcoin and other cryptocurrencies’ conversation rates into the US dollar or even their real value worth a discussion which is not included in this article. One thing is for sure, Bitcoin’s wide spread popularity all over the World poses as an evidence for the growth of the digital payment systems and proves the growth will continue in the near and far future. In terms of this view, Bitcoin should be considered as a beneficial source that enables the growth of the companies that provide digital payment.

According to the survey results, almost 60% of the merchants may agree to accept Bitcoin instead of the US dollars in business. Since awareness comes before the trust can be established, it seems the merchants have become aware of the rise in the acceptance of cryptocurrencies around the world. And this is only the beginning.

In 2015, PayPal incorporated Bitcoin into its software program. However, it is perhaps wiser not to dive in too deep into the flow since it can entirely wipe a merchant’s margin on a sale. Since currency risk is one of the most important things that companies try to avoid, the accepting manner of the businesses and businessmen toward Bitcoin may increase this risk in terms of their operations.

It is clear that the technology of online digital payment is working its way to the top and becoming much more popular in mainstream. More and more acceptance of the mentioned digital currencies will only make the digital payment technologies become an inevitable part of many people’s lives in the long run. In an extended period of time, Bitcoin and alike cryptocurrencies will pose more as an opportunities rather than threats to PayPal.

Especially the young generation considers technologies of digital payments as the new wave towards progress. It seems that our lives have become online but, unfortunately, the potential of the market has not been entirely realized yet.

With relatively easy system of receiving fee for the provided transaction processes and other related services, Paypal’s volume is incredibly high on the market already. And in order for the company to expand, it needs to increase its share of revenue. With the division from eBay in 2013, the company’s brain team turned their focus on company’s growth. By the end of 2017, PayPal has held approximately $7.5 billion of cash and its equivalents.

Nevertheless, PayPal’s growth in the long run is considered a great success, there are significant risks the company faces. The larger problem is based on technology. However, Bitcoin and other cryptocurrencies may directly or indirectly have a positive effect on the spread of digital payment technology.

The regulations also pose as big issues. Also, PayPal had to deal with varies data breaches which can cause liabilities. Credit risk of the users and the companies is another significant risk to consider. No doubt, the biggest risk stems from the PayPal’s relationship with eBay that also seems to be going away in near future. It is foreseen that the company will compensate and outgrow its loss within a short period of time with the current growth pace.

The digital payments sector is big enough for many companies to keep expanding. This competition can slow PayPal’s growth rate but cannot remove the company off the map.