September 12, 2023 at 16:29 GMTModified date: September 12, 2023 at 16:29 GMT
September 12, 2023 at 16:29 GMT

PayPal launches new feature to sell crypto

PayPal has announced the launch of new on and off-ramps for Web3 payments with Metamask and other Web3 apps.

PayPal launches new feature to sell crypto

PayPal has announced the launch of new on- and off-ramps for Web3 payments, which is being integrated with MetaMask and other Web3 apps. This will allow US-based users to convert their crypto holdings into US dollars. These dollars will then be credited directly to their PayPal balance.

The newly revealed PayPal off-ramp feature has been made immediately available to a variety of platforms including crypto wallets, decentralised applications (dApps), and non-fungible tokens (NFTs) marketplaces. Among the first to integrate this feature is the MetaMask wallet.

This is part of PayPal’s strategic move into the crypto space, with the payment provider taking further steps into expanding its digital asset services. It has recently partnered with Ledger and MetaMask, giving more on ramp options for crypto investors. 

PayPal’s new crypto ramps

These new on- and off-ramps were designed to let people in the US buy and sell cryptocurrencies with ease.

Paypal said in the press release: “Once integrated, web3 merchants can help grow their user base by connecting to PayPal’s fast and seamless payments experience trusted by millions, while leveraging PayPal’s robust security controls and tools for fraud management, chargebacks and disputes.”

PayPal has previously launched its on ramp tools that let US customers buy crypto straight from their PayPal accounts. They worked with MetaMask and Ledger to do this, with more partnerships expected.

However, the new off-ramps mean investors can change their crypto into US dollars in their PayPal accounts. They can use it to shop, send money, save, or move it to their bank.

A promotional YouTube video was released along with the announcement. It showcased the interface, with a screenshot showing a user transferring 0.0015 BTC, roughly $50, to another wallet. 

This transaction incurred a $5 network fee along with a $2.19 transaction fee. However, the specific wallet used for this transaction wasn’t shown. 

PayPal teams up with Ledger

August 2023 saw PayPal collaborate with Ledger, a major name in the cryptocurrency storage device space.

This collaboration allowed for the connection between a users’ PayPal and Ledger accounts. 

Ledger users in the US can now purchase popular digital currencies, such as Bitcoin and Ethereum, directly with PayPal. Those without a PayPal account will need to create one or undergo verification checks.

Purchases made through PayPal will automatically transfer the digital assets to the user’s Ledger device.

Pascal Gaithier, Ledger’s CEO, said when it was announced: “We’re combining the uncompromising security of Ledger with PayPal’s leadership in protected payments technology to help facilitate a seamless platform for user crypto transactions.” 

MetaMask and PayPal Collaboration

This new feature is not PayPal’s first venture into the Web3 world. From May 2023, MetaMask users in the US have the option to purchase Ethereum through PayPal. 

This collaboration began at the end of 2022 when MetaMask’s parent company, ConsenSys, and PayPal partnered to streamline Ethereum transactions.

“MetaMask is the first web3 wallet to enable users to buy ETH using PayPal, a leader in the digital payment space,” the press release said. “In addition to purchasing ETH directly, the integration also supports the transfer of ETH from PayPal to MetaMask, aiding in more self-custody adoption.”