Payment giant PayPal and cryptocurrency wallet MetaMask today announced a partnership, introducing PayPal as a new payment method that will enable users to buy and transfer ether (ETH) from PayPal to MetaMask.
Starting to roll out to select MetaMask customers in the United States today, the new functionality will become available to all eligible US customers over the next few weeks. ETH purchases are subject to a 1% PayPal service fee.
This MetaMask and PayPal integration seeks to improve and diversify payment options for MetaMask. Existing on-ramp payment options for ETH on MetaMask include Apple Pay (US only), credit card and bank transfer.
With over 21 million monthly active users in 2022, MetaMask’s self-custodial wallet also serves as a gateway to more than 3,700 DeFi dapps.
“This integration with PayPal will allow our U.S. users to not just buy crypto seamlessly through MetaMask, but also to easily explore the Web3 ecosystem,” said Lorenzo Santos, Product Manager for Metamask, in a statement issued by ConsenSys, the parent company of MetaMask.
MetaMask is the first cryptocurrency wallet that PayPal has partnered with to drive on-ramp transactions.
While this partnership is their first on-ramp, PayPal’s exploration into crypto operations began in 2020 with the platform opening up to cryptocurrency custodial services. In 2021, it began to allow customers to pay via PayPal’s network of merchants with crypto funds. In June this year, the company also announced that it would allow users to transfer their funds to third-party wallets after being criticized for only letting customers keep their crypto funds on PayPal’s own platform.
Payment companies are increasingly incorporating crypto into their business models. Earlier this month, Stripe, one of PayPal’s key competitors, had announced the launch of an on-ramp widget that allows users to directly purchase cryptocurrencies in Web3 apps such as games and NFT marketplaces.
While a crypto onramp allows users to easily convert fiat into supported cryptocurrency, an on-ramp service offered by traditional payment companies might bring more familiarity to everyday users.o. Consumers’ trust in traditional payment service providers and easy of use might reduce barriers, bringing more individuals into the world of cryptocurrencies.