PayPal and MetaMask Wallet announced on Wednesday, Dec. 14, that they would merge their separate "buy," "sell," and "hold" cryptocurrency services to provide their customers with more alternatives when transferring digital assets between the two platforms.
According to CoinDesk's report, a joint press statement from PayPal and MetaMask creator ConsenSys explains that this collaboration will make it possible for clients to use PayPal as a payment option when purchasing Ethereum (ETH) from inside the MetaMask app.
The service is meant to make it simple to use PayPal to buy crypto and send it to a wallet app like MetaMask.
Business Objectives
PayPal has made its name as an electronic payment system. However, the company's ultimate goal is to serve as an accessible entry point into the world of cryptocurrencies.
With that in mind, MetaMask's creators at ConsenSys have said they will soon provide PayPal functionality into the crypto wallet app.
TechCrunch dubs MetaMask one of the most well-known non-custodial cryptocurrency wallets. Reportedly, the app is a place to save crypto assets and access web3 services and goods with a single login.
As the industry searches for a path forward amid the crypto winter, MetaMask hopes this initiative will attract more people to the web3 ecosystem.
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MetaMask Usage
Sadly, there is not much you can do without funds in your MetaMask wallet.
To acquire crypto and move it to a MetaMask wallet, customers must depend on centralized exchanges such as Coinbase and Kraken.
To avoid having to go through these extra processes and switching services, MetaMask's mobile app has its own on-ramp functionality. MoonPay, Wyre, and Transak are among the gateway providers.
A "know your customer" (KYC) procedure will be required if you purchase crypto with one of these partners. This implies you will have to provide a ton of information about yourself and prove who you are by showing identification.
The integration of MetaMask with PayPal is a win-win for both services. With the current on-ramp options, MetaMask likely has a low conversion rate.
PayPal Gains
According to the most recent earnings report, about 430 million PayPal accounts exist today.
Having a large button on MetaMask that reads "buy cryptocurrencies using your PayPal account" will make the process seem simple and familiar to anyone who has used PayPal before.
Greater use of PayPal translates to more money for the firm.
The first ETH purchases made using MetaMask will be limited to PayPal. Prior to its full rollout throughout the US, it will be made accessible to a select group of customers.
Funding your MetaMask wallet is as simple as transferring ETH from your PayPal balance. If not, you may use your PayPal account or other payment methods to purchase ETH using PayPal.
Reports indicate that PayPal began facilitating cryptocurrency payments around June this year. The firm provides wallet addresses, enabling customers to add cryptocurrency to their PayPal balance.
Also, PayPal accounts may be used to transfer money to an external cryptocurrency wallet.
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