PayPal is most widely recognised as a means of making online payments. However, the company’s ultimate goal is to become a painless entry point into the world of cryptocurrencies. ConsenSys, the company behind the popular cryptocurrency wallet MetaMask, recently announced that it will integrate PayPal into the wallet.
When it comes to non-custodial cryptocurrency wallets, MetaMask is among the most widely used options. It’s a way to secure your crypto holdings and engage with web3 goods with only a single login and password.
However, your options will be limited without funds in your MetaMask wallet. Because of this, users must rely on centralised cryptocurrency exchanges like Coinbase, Kraken, and FTX to acquire bitcoin and move it to their MetaMask wallet. With MetaMask, you can bypass these extra steps by using the on-ramp capabilities built right within the mobile app, meaning you never have to leave the platform. Transak, Wyre, and MoonPay are among the onboarding partners available.
A “know your customer” (KYC) process will be required if you make a cryptocurrency purchase with one of these partners. You’ll have to provide a tonne of personal data and prove your identity with an ID of some kind.
MetaMask and PayPal’s relationship is good for both parties. The current on-ramp options may not have a high conversion rate, which is bad news for MetaMask. Due diligence procedures might be scary.
According to PayPal’s latest earnings report, there are 430 million active PayPal accounts throughout the world. It will seem natural and simple to MetaMask users if they see a huge button proclaiming that PayPal accounts may be used to purchase cryptocurrency. More transactions equal more money for PayPal.
MetaMask users will initially only be able to use PayPal to purchase Ethereum (ETH). At first, just a subset of American users will have access to it, but eventually, it will be made available to everyone in the country.
You may utilise Ethereum Classic (ETH) stored in your PayPal account to finance your MetaMask wallet. If not, you can use your PayPal balance or other payment methods to purchase ETH using PayPal.
Because of the costs associated with purchasing cryptocurrency, PayPal will benefit financially from this trend. When it comes to web3 wallets, this is PayPal’s first time being used as an entry point provider. However, I wouldn’t be shocked if, in the future, more cryptocurrency wallets had PayPal buttons.
PayPal began facilitating cryptocurrency payments earlier this year. PayPal account holders in the US can obtain wallet addresses to add cryptocurrency to their PayPal balance. Users of PayPal also have the option of sending money to an external cryptocurrency wallet.
Many believe that cryptocurrency can completely replace PayPal as a means of online and mobile money transfers because of the widespread perception of cryptocurrencies as internet money. However, links between fiat currency and cryptocurrency wallets will remain a constant. And PayPal intends to use it to its advantage.
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