PayPal and MetaMask team up to make it easier to buy crypto • TechCrunch

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PayPal is primarily known as an online payment method. But the company wants to become an easy way to get started with cryptocurrencies. In this regard, ConsenSys, the company behind MetaMask, has announced that it will add an integration into its crypto wallet so that users can purchase cryptocurrencies using their PayPal account.

MetaMask is one of the most popular non-custodial crypto wallets. It allows you to store crypto assets and interact with Web3 products, as you can use your wallet as an authentication method.

But there is not much you can do if you have an empty MetaMask wallet. This is why users rely on centralized cryptocurrency exchanges like Coinbase, Kraken, and FTX to buy cryptocurrencies and transfer them to their MetaMask wallet. MetaMask also has its own ramping features in its mobile app so you don’t have to switch to another service and go through a lot of intermediate steps. Partners on the ramp include MoonPay, Wyre and Transak.

If you buy crypto with one of these partners, you will have to go through a KYC (know your customer) process. That means you’ll have to enter a bunch of personal information and verify your identity with some form of ID.

The partnership between MetaMask and PayPal will benefit both companies. On the MetaMask side, chances are the conversion rate with existing ramping solutions won’t be great. KYC processes can be daunting.

There are already 430 million PayPal accounts worldwide according to the company’s latest earnings report. If MetaMask users see a big button that says you can buy cryptocurrencies with a PayPal account, it will look easy and familiar. As for PayPal, more business means more revenue.

Initially, MetaMask users will only be able to purchase Ethereum (ETH) with PayPal as a payment method. It will be available to select users in the US before rolling out to everyone in the US

If you already have ETH in your PayPal account, you can use those ETH to fund your MetaMask wallet. If not, PayPal will help you buy ETH with your PayPal balance or other payment methods.

And it will generate revenue for PayPal as the company charges fees to purchase cryptocurrencies. This is PayPal’s first integration as a quick access provider for a Web3 wallet. But I wouldn’t be surprised if we see more PayPal buttons in crypto wallets in the future.

Earlier this year, PayPal also added support for crypto transfers. PayPal users in the United States can obtain wallet addresses to fund their PayPal account with crypto assets. Similarly, PayPal users can send funds to a third-party crypto wallet.

As many people think of cryptocurrencies as internet money, they believe that crypto can completely replace PayPal as a way to send and receive money from computer and phone. But there will always be bridges between traditional bank accounts and crypto wallets. And PayPal plans to take advantage of it.

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