- PayPal is working with the crypto wallet MetaMask to offer an easy way to buy crypto
- The service has officially been rolled out to select PayPal users within the United States, with more expected in the coming weeks.
- The integration will expansively expose both user bases to applications that include NFT marketplacesP2E games, DAOs, DeFi applications, and metaverse worlds.
A popular digital payments platform, PayPal, has announced a new collaboration with Web3 wallet MetaMask. The news followed a Wednesday announcement by ConsenSys, a market-leading Web3 company, explaining that the integration would enable MetaMask users to buy or transfer Ether (ETH), the second-most-popular crypto after Bitcoin.
The PayPal-MetaMask partnership is the latest in a series of announcements looking to improve and diversify payment options for users within the MetaMask mobile app.
The PayPal-MetaMask partnership is poised to produce the same results as in current PayPal’s checkout feature on some online stores such as eBay and Etsy. If valid, users may transfer or buy Ethereum in a three-step process.
- Step 1: Login into the Mobile MetaMask App
- Step 2: Click or tap on the Buy button, then select ‘PayPal’
- Step 3: Enter the desired dollar amount worth of ETH to add to your wallet. You will be redirected to PayPal to log in.
- Step 4: Buy your crypto via PayPal, or if you have enough ETH to complete the transaction, send it without buying more.
- Step 5: Done! You have successfully purchased crypto directly in MetaMask and can now explore Web3 easily.
With the integration, MetaMask becomes the first Web3 wallet to leverage PayPal to drive more successful on-ramp transactions.
From the announcement, the service is available only to a handful of PayPal users, handpicked within the United States populace. Among the reasons for prioritizing the U.S. is that it represents one of MetaMask’s most important markets in terms of regional users. Nevertheless, a more expansive rollout to all US-based users is expected in the next few weeks.
Speaking on the development, MetaMask product manager Lorenzo Santos said that the benefits of the partnership go beyond crypto and may offer an avenue for advancing Web 3.0 technology. In his words:
“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.”
In retrospect, Santos’ statement bears some truth as crypto wallets like MetaMask often avail ways of interacting with Web 3.0 applications, including but not limited to play-to-earn (P2E) games and some metaverse platforms.
MetaMask is the world’s number one self-custodial wallet, providing the primary way for millions of users to interact with applications that include NFT marketplaces, play and earn games, decentralized autonomous organizations (DAOs), decentralized finance (DeFi) applications, and metaverse worlds.
Accordingly, a PayPal-MetaMask integration is expected to expose some of these applications to both user bases expansively.
PayPal Nurtures Its Relationship with Crypto
The MetaMask partnership is not PayPal’s first onslaught into the crypto space. The payments platform has a history of trying its hands on crypto in many other ways for a few years.
For instance, in 2020, PayPal opened up access for users on its platform to buy, hold, and sell crypto before going a step further in 2021 when it added the “checkout with crypto” feature supporting Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), and Bitcoin Cash (BCH).
In June, PayPal allowed its customers to transfer any crypto bought on PayPal to other wallets or exchanges. This came after mainly having siloed customer crypto funds within the PayPal ecosystem since 2020. Moreover, in October, PayPal was among the payment companies that filed crypto trademark applications with USPTO.
With the current move to integrate MetaMask, PayPal joins its industry peer, Stripe, which launched its tool targeted at helping Web3 companies, including games and NFT marketplaces. With the Stripe tool, related customers can buy crypto using fiat currencies such as the U.S. dollar. Stripe, a payments company like PayPal, collaborates with Apple and Walmart and has since expressed interest in handling fraud, compliance, and know-your-customer (KYC) checks.