NEW YORK (TheStreet) -- PayPal  (PYPL - Get Report) stock closed up 1.73% to $38.14 in on heavy trading volume today, as Jefferies contended that its Pay With Venmo platform could add between 2.1% and 5.5% to 2017 per-share earnings and drive multiple expansion. 

Throughout 2016, PayPal will allow its roughly 10 million merchants to accept Venmo payments, known as "Pay With Venmo," therefore "generating traditional take rate revenue for PYPL and monetizing the Venmo asset," the firm explained. 

In a survey of 1,000 Venmo users, Jefferies determined that 67% of those surveyed would use Pay With Venmo between once and twice a month, 44% would use it between three and five times per month and 19% would use it between six and 10 times a month. 

TheStreet's Jim Cramer and Jack Mohr commented on Venmo's potential in a Action Alerts PLUS post today, noting that Venmo processed more than $1 billion payments in January. 

Even more exciting than the payments volumes, however, are Venmo's efforts to monetize the service, Cramer and Mohr contend.

"In our view, Venmo has just scratched the surface on this front, through both its Pay With Venmo capability, where users can purchase goods at select merchants, and by integrating Venmo for payments within smartphone applications," they continued. "As these efforts continue to take shape, we have repeatedly indicated Venmo will become a more meaningful top- and bottom-line contributor to PayPal."

(PayPal is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings here.)

About 23.81 million shares of PayPal were traded today, well above the company's average trading volume of roughly 11.81 million shares per day. 

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