Consensys, the leading Ethereum software firm behind MetaMask, has partnered with PayPal to enable US customers to buy ETH and access Web 3.0 services.
Per the announcement last week, “PayPal will seamlessly integrate within the MetaMask wallet, providing customers with a simple and convenient way to buy Ethereum with PayPal.”
Functionality will be available to eligible PayPal app users in the United States at first. The integration is set to leverage PayPal’s large user base and Metamask’s crypto wallet to allow users to “easily explore the Web3 ecosystem.”
PayPal is primarily known as a payment processor which rose to prominence in tandem with Web 2.0 companies, namely YouTube, Google, Facebook, Twitter and other popular big tech names. MetaMask, the popular non-custodial wallet lets users store crypto assets and access web3 products. Combined, the two are set to fill a market inefficiency.
Today, users tend to rely on exchanges to transfer value from the fiat world to crypto. Major exchanges include companies like Coinbase, Kraken, Bitfinex or Binance. With a Metamask wallet, users can step in and out of these exchanges, but there is no service that immediately switches without intermediary steps.
PayPal and Consensys-owned-MetaMask are set to make the transition smoother.
Easy access to Web 3.0
For PayPal, more activity means more revenue. As for Metamask, conversion rates could be improved, and intimidating KYC (know your customer) processes ameliorated. According to the most recent earnings report, there are 430 million PayPal accounts worldwide, with 75 percent of Americans currently using the service. If an easy means to access Web3.0 is added to the interface, users would gain instant access to the emerging crypto sector besides buying and transferring coins.
This includes interacting with NFT marketplaces, play and earn games, Decentralised Finance (DeFi), decentralised autonomous organisations (DAOs) and metaverse worlds. In a dash to maintain its huge user numbers, PayPal has been carving inroads into the crypto space.
In June, the payments processor finally added support for Bitcoin, Ethereum and Litecoin transfers. US users can now get wallet addresses to fund their account via crypto as well as send funds to third-party crypto wallets.
Notably, a common mantra in the Bitcoin community focuses on replacing payment processors such as PayPal. While technically true, this integration aims to improve ease-of-use. In other words, PayPal is focusing on user-experience, and bridging the gap between traditional bank accounts and crypto wallets.
A clear jab at Bitcoin proponents, Metamask users will initially only be able to purchase ETH with PayPal as the payment method. Users who already have ETH in their PayPal account will be able to fund their Metmask wallet immediately. The payments company also expanded its crypto services to Luxembourg recently, signalling an intention to grow its services throughout Europe.