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Online payment giant PayPal is expanding its cryptocurrency offerings, joining forces with cryptocurrency company MoonPay to offer its more than 426 million customers access to over 100 digital assets.
By wrapping crypto inside the PayPal app, banking rules may no longer be a barrier.
“Frequently, crypto purchases fail when users attempt to use their debit cards directly due to certain bank restrictions,” a MoonPay spokesperson said. “MoonPay's partnership with PayPal offers a solution, significantly increasing the success rate of crypto transactions—even when using the same debit card.”
MoonPay added that PayPal customers will be able to buy cryptocurrency without having to separately provide their personal or card information to MoonPay.
PayPal customers could previously buy Bitcoin (BTC), Ethereum (ETH), PayPal USD (PYUSD), Bitcoin Cash (BCH), and Litecoin (LTC). With the MoonPay deal, customers will also have access to Solana (SOL), Tether (USDT), Dogecoin (DOGE), Cardano (ADA), Polygon (MATIC), and more.
According to MoonPay, U.S. customers in all 50 states will be able to purchase cryptocurrency on the PayPal platform using their account balance, direct bank withdrawal, or debit card.
As of today, 50% of U.S. users can access the PayPal integration, the company said.
MoonPay touted greater flexibility and choice, a variety of token support, seamless onboarding, and convenience.
“Unlike other solutions which limit PayPal purchases to PYUSD or ETH, users with a PayPal account can buy and sell 110+ different cryptocurrencies via MoonPay,” the company spokesperson added.
MoonPay said it uses a multi-faceted approach to operate within the law, including IP controls, blockchain monitoring, and a robust KYC process.
“MoonPay takes its commitment to compliance and regulations seriously, and maintaining bank grade compliance controls is one way to demonstrate that commitment,” the MoonPay spokesperson said.
PayPal first announced plans to bring cryptocurrency to the platform in October 2020.
"We are pleased to announce that all eligible PayPal accountholders in the U.S. can now buy, hold and sell cryptocurrency directly with PayPal," the company said at the time, adding that payments will be converted into fiat at the point of sale.
In April 2021, PayPal added cryptocurrency buying options to its Venmo social payment platform, followed by a rollout in the United Kingdom in August 2021.
While PayPal initially restricted customers from transferring their digital assets off of the platform, PayPal began letting users transfer Bitcoin and Ethereum to external wallets in June 2022.
PayPal did not immediately respond to Decrypt’s request for comment.
Edited by Ryan Ozawa.