PayPal Expands Crypto Services with MoonPay

PayPal is broadening its cryptocurrency reach by partnering with MoonPay, a move set to offer PayPal’s vast user base—over 426 million customers—access to an expanded array of more than 100 digital assets. This collaboration aims to streamline the crypto transaction process and navigate the common banking challenges that users face.

MoonPay highlights that traditional crypto purchases often encounter hurdles when users attempt to use their debit cards directly due to bank restrictions. “The partnership with PayPal enhances transaction success rates significantly, even when using the same debit card,” a MoonPay spokesperson explained. This integration will allow PayPal customers to buy cryptocurrency directly without needing to input their personal or card details separately to MoonPay.

Previously, PayPal users were limited to purchasing Bitcoin (BTC), Ethereum (ETH), PayPal USD (PYUSD), Bitcoin Cash (BCH), and Litecoin (LTC). The new arrangement with MoonPay opens the door to additional cryptocurrencies like Solana (SOL), Tether (USDT), Dogecoin (DOGE), Cardano (ADA), and Polygon (MATIC).

MoonPay also notes that U.S. customers across all 50 states can now utilize their PayPal account balances, direct bank withdrawals, or debit cards to buy cryptocurrency on the MoonPay platform without manually entering payment information. As of today, half of U.S. users have access to this PayPal integration.

The partnership is celebrated for offering greater flexibility, a wide array of token support, seamless onboarding, and enhanced convenience. “Unlike other platforms that restrict PayPal purchases to PYUSD or ETH, our users can now transact in over 110 different cryptocurrencies via MoonPay,” added the spokesperson.

MoonPay also emphasizes its strict adherence to legal and regulatory standards, incorporating IP controls, blockchain monitoring, and a robust Know Your Customer (KYC) process. “Maintaining bank-grade compliance controls is a testament to our commitment to compliance and regulations,” the spokesperson remarked.

This strategic alliance follows PayPal’s initial foray into the cryptocurrency space, which began in October 2020 with the announcement that U.S. account holders could buy, hold, and sell cryptocurrencies. Subsequently, PayPal expanded crypto buying options on its Venmo platform in April 2021 and entered the UK market in August 2021. Further broadening its services, PayPal enabled users to transfer Bitcoin and Ethereum to external wallets in June 2022.