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When cryptocurrency started back in 2009, there were a number of doubters who thought it would be a passing trend. BTC might reach around $1 to $2, but the volatility would eventually wash away investors and make the concept of digital currency a thing of the past. It hasn’t quite panned out that way. At the time of writing, BTC is currently sitting at $75,100 and growing, while there are hundreds of other altcoins that have similarly created their own financial ecosystem.
One of the reasons for this meteoric rise is the incorporation of crypto by several major industries, including the fintech industry. In 2020, for instance, PayPal – which is the leading player in digital payments – allowed its users to buy, sell, and hold cryptocurrency, providing mainstream access to entirely digital assets. Over the last four years, specifically, this move has helped to legitimise crypto in a way it hadn’t been before, broadening its appeal and fueling its growth in the financial sector.
The Relationship Between Crypto and Fintech
In many ways, the relationship between crypto and fintech has never been brighter. As with all good relationships, both sectors complement each other and have assisted in accelerating the adoption and innovation within both fields.
Fintech platforms like PayPal have made crypto more accessible to everyday consumers, while the rise of blockchain and decentralised finance has encouraged fintech companies to integrate new payment solutions – thus forming a symbiotic relationship that is driving forward the financial landscape, creating more opportunities for growth and new ways for individuals to interact with money in the digital age.
Finding New Sectors for Finance
A good example of this can be found in the iGaming space. Over the last few years, both PayPal and cryptocurrency have become increasingly integrated into online gaming and gambling platforms, offering seamless, secure payment options that have not been available for players up until now. Just a quick search online will demonstrate how popular these platforms are.
At the time of writing, Casino.org reviews PayPal casinos and crypto casinos, and both have been performing well, attracting a growing number of players due to their transparency, security, and speed in processing transactions. This shift has subsequently marked a significant change in the iGaming – and fintech – landscape, especially in terms of the stock market, where new investors have been attracted to the potential for further growth.
The Result for PayPal Stock
It’s important to remember, of course, that PayPal stock was not doing very well just a few years ago. Before the impact of PayPal’s new relationship with cryptocurrency became clear, PYPL stock declined by more than 80%, taking more than a year of sideways action to get back to a stronger position. In 2024, that position is now strong.
After clearing the $64 level in August, PayPal is now a leading stock again, with the potential to break out and hold above the $82 level. A good portion of this comeback can be attributed directly to cryptocurrency, and its subsequent transition into new sectors. As PayPal continues to integrate crypto solutions and expand into emerging markets – including BNPL – its ability to capitalize on these high-growth areas has nicely positioned the company to attract renewed investor confidence and drive future stock growth even further.
Leading in Web3 Technology
By forming an intrinsic bond with cryptocurrency, the fintech space has also positioned itself well to take advantage of emerging Web3 technologies. Companies like PayPal, for instance, are already experimenting with decentralized finance solutions, with the rise of dApps (decentralized applications) on blockchain platforms presenting a wealth of opportunities to integrate smart contract capabilities into its digital wallet. For those unaware, dApps are blockchain-based apps that operate without a central authority, offering a range of benefits including enhanced security, transparency, and trust.
With this in mind, there have been many critics wondering where centralized fintech companies would fit in, but with PayPal leveraging both blockchain and traditional finance, it has found a way to bridge the gap. By integrating Web3 solutions like dApps into their platforms, fintech companies can offer users the best of both worlds: the decentralized advantages of crypto, coupled with the familiar security and customer support that centralised systems provide. This hybrid approach positions relevant fintech organisations as key players in the evolving digital economy, which is likely to drive even more innovation, attract new users, and enhance the fintech industry exponentially.
Conclusion
It’s fair to say, then, that the relationship between crypto and fintech is a positive one. Not only has it given the industries more space and flexibility to branch out, but it has also positioned the fintech industry as a relevant, forward-thinking sector, while also giving the crypto space far more authority and serving as a reputational pull for investors.
Looking ahead, the integration of Web3 technologies, decentralized finance, and blockchain-based solutions into mainstream fintech services is poised to completely revolutionize the way we all handle our finances. As adoption grows, too, we can expect a more seamless blending of traditional and decentralized currency, with major players like PayPal leading the charge in providing hybrid services. The future is certainly looking bright and – so long as this relationship remains positive – it’s likely that even more doors are due to be opened.
