PayPal has partnered MetaMask to allow users to purchase cryptocurrencies via the MetaMask platform using their PayPal accounts. Through this partnership, PayPal aims to make it easier for users to get started with cryptocurrencies.

To this end, the company behind MetaMask, ConsenSys, has agreed to add an integration in its crypto wallet that will allow users to purchase cryptocurrencies in a straightforward way using their PayPal accounts. Apart from allowing its users to store crypto assets and interact with web3 products, the MetaMask wallet can also be used as an authentication method, and it offers its own on-ramp features via a mobile app. With this mobile app, users can leverage the services of on-ramp partners such as MoonPay, Wyre and Transak.

However, interacting with these partners also involves a KYC process (know your customer), which requires users to submit personal information as well as verify their identities with an ID. Since KYC processes can impact conversion rates, MetaMask’s partnership with PayPal could be beneficial for both companies, as PayPal could bring a sense of familiarity and trust to the platform. At first, users will only be able to use PayPal as a payment method to buy Ethereum.

Moreover, if users already have Ethereum in their PayPal accounts, they will be able to use those assets to fund their MetaMask wallets. PayPal added crypto features to its app in 2022 In August 2022, PayPal has added cryptocurrency features to its mobile app. Starting on 15 August, users of the PayPal app received the ability to buy, sell, and transfer several cryptocurrencies.

PayPal also updated its website with educational articles about cryptocurrency, volatility, and tax regulations in order to help beginner cryptocurrency holders to have a better understanding of the assets and to stay safe. The PayPal mobile app allows users to start with a USD 1 balance. However, the company applies network fees when transferring crypto to or from PayPal accounts.

The platform first introduced the option to buy, sell, and hold digital assets in October 2020. In December 2022, PayPal has announced that it will expand its crypto service to Luxembourg, which could pave the way for better adoption of the service in the EU. By introducing the service in Luxembourg, the company could end up serving the other 26 countries in the bloc once the Markets in Crypto-Assets (MiCA) regulation comes into effect.

According to this regulatory regime, any firm registered in any single member state should receive a licence to offer their services throughout the EU through the ‘passporting’ process. .