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MoonPay, a leading cryptocurrency payments platform, has announced the integration of PayPal as a new fiat on-ramp for its users in the European Union and the United Kingdom.
This move will allow customers to use PayPal to purchase cryptocurrencies on the MoonPay platform, providing a seamless and convenient user experience. Initially available to 1% of European users, a full rollout across the region is expected soon, though residents of Croatia, Iceland, and Hungary will not have access to this service.
MonnPay expanding crypto access with PayPal integration
MoonPay’s decision to integrate PayPal stems from the latter’s significant popularity in the United States, where it ranks as the third-most commonly used payment method after Apple Pay and traditional bank cards.
By offering PayPal as a payment option, MoonPay aims to lower the barriers to entry for new users, making it easier and more convenient for them to purchase cryptocurrencies. Ivan Soto-Wright, CEO and co-founder of MoonPay emphasized that this move will provide a frictionless experience and increase trust among its growing customer base.
In the United States, MoonPay already offers PayPal as a payment method in 48 states, with New York and Texas being the exceptions. The integration is part of MoonPay’s broader strategy to enhance its services and cater to the diverse needs of its global user base.
By incorporating PayPal, MoonPay leverages a widely trusted and user-friendly payment option, which is expected to attract more users to its platform.
PayPal’s foray into the crypto market
PayPal’s integration with MoonPay is part of its larger strategy to establish a foothold in the cryptocurrency market.
In August 2023, PayPal launched its own U.S. dollar stablecoin, PayPal USD (PYUSD), backed 1:1 by cash and short-term cash equivalents.
Initially deployed on Ethereum as an ERC-20 token, PYUSD faced challenges due to Ethereum’s limited transaction speed and high costs.
To address these issues, PayPal deployed PYUSD on the Solana network in May 2024. Solana offers higher throughput and lower transaction costs, making it suitable for everyday transactions. This deployment also introduced “confidential transfers,” a feature that hides transaction amounts from the public while ensuring compliance with reporting regulations.
Stablecoins like PYUSD play a crucial role in the cryptocurrency ecosystem. They provide liquidity, reduce transaction costs, and facilitate cross-border payments. By offering a stable value, these digital tokens enable more efficient and secure transactions, thereby promoting wider adoption of cryptocurrencies.
MoonPay’s integration of PayPal as a fiat on-ramp is a significant step towards making cryptocurrency more accessible and user-friendly for individuals across the UK and EU.
