PayPal is expanding its digital assets services by integrating new avenues for selling cryptocurrencies. This development, officially introduced on September 11th, has established new on and off ramps for Web3 payments, allowing US users to convert their cryptocurrencies to USD directly from their wallets to their PayPal balance.
PayPal’s On and Off Ramps
This newly launched functionality aims not only to facilitate the buying and selling of multiple cryptocurrencies in the United States but also to help web3 merchants expand their user base. This is achieved by leveraging PayPal’s robust security mechanisms and trusted payment experience known to millions of people worldwide. Moreover, these advancements play a pivotal role in fraud management, overseeing chargebacks and disputes, enhancing overall online transaction security.
The Significance and Limits of MetaMask
Despite promising developments, it is important to note that MetaMask does not support Bitcoin transactions on the original BTC blockchain. This information was highlighted in PayPal’s promotional video on YouTube, showcasing a transaction involving the transfer of 0.0015 BTC (worth $50) to an external wallet, accompanied by a network fee of $5 and a transaction fee of $2.2. However, the video did not specify the wallet used for this transaction.
This initiative follows PayPal’s collaboration with leading hardware wallet company Ledger in August, fostering a new integration that allows verified PayPal users in the US to purchase various cryptocurrencies directly through the native Ledger Live software. This collaboration marks a series of progressive partnerships, including MetaMask enabling Ethereum purchases via PayPal for US users in May 2023, following an initial agreement between MetaMask’s parent company, ConsenSys, and PayPal to enable ETH transactions by late 2022.
