MetaMask, one of the most widely used Web3 crypto wallets, has introduced the ability to buy ETH directly through PayPal, but only for users in the United States.
Here are all the details.
Summary
MetaMask integrates PayPal for direct crypto purchases
In the news, MetaMask itself claimed to be the first Web3 wallet to offer ether transactions via PayPal.
But what changes in practice? Everything, actually.
Thanks to this collaboration, US users can now choose PayPal as a payment method to buy ETH on MetaMask. The integration also makes it possible to transfer ETH from PayPal to MetaMask.
In addition, the financial technology company collaborated with MetaMask’s parent company ConsenSys last December, claiming that the partnership would allow users to seamlessly buy cryptocurrencies and easily explore the Web3 ecosystem.
We see PayPal joining a large ecosystem of payment providers already integrated with MetaMask, including Coinbase Pay, MoonPay, Sardine, Transak, Wyre and others.
In a quarterly filing with the US Securities and Exchange Commission, the company revealed that it held a total of $943 million in crypto as of 31 March 2023. This is a 56% jump from the previous quarter, when the company reported $604 million in crypto.
MetaMask and the new feature to buy crypto with fiat currency
We see that the new PayPal integration came just weeks after MetaMask announced a new feature that allows users to buy crypto with fiat currency directly from its DApp portfolio.
Known as “Buy Crypto”, the new feature allows users to purchase a range of cryptocurrencies using a variety of payment methods, including debit or credit cards and bank transfers, according to the company:
In addition, the service will be available to users in over 189 countries and will offer over 90 tokens on eight different networks, including Ethereum, Polygon, Arbitrum, BNB Smart Chain, Avalanche Contract Chain, Fantom, Optimis and Celo.
To access the feature, MetaMask users can link their wallet to the dApp wallet or simply select the ‘Buy’ button in the MetaMask extension wallet.
They can then select their region, payment method, token and the network they wish to purchase on.
But that’s not all: the function also takes into account a number of factors, such as the user’s location and local regulations, in order to provide a customised offer for each purchase. Once the user has selected a quote, they are redirected to a third party website to complete the transaction.
The funds are then deposited directly into the user’s MetaMask wallet. In general, we know that MetaMask has always looked to integrations and partnerships to extend its reach and provide on-ramps for its customers.
MetaMask and crypto expansion in Nigeria via MoonPay
Another recent development for MetaMask is the expansion of direct access to cryptocurrencies in Nigeria.
In this case, thanks to a partnership with crypto fintech company MoonPay, the wallet now allows users in the African country to purchase cryptocurrencies via instant bank transfers.
According to the Chainalysis 2022 Global Crypto Adoption Index, Nigeria is one of the top twenty countries in terms of cryptocurrency adoption.
As we know, prior to the partnership, MetaMask users in Nigeria had access to wallets, but the process of buying cryptocurrencies was expensive and time consuming.
As Lorenzo Santos, MetaMask’s Product Manager, explained:
“While Moonpay had a card integration feature, around 90% of attempts to buy cryptocurrencies with a credit or debit card were declined”.
Instead, with the new integration supporting local bank transfers, buying cryptocurrency on MetaMask is now faster and cheaper, allowing users to access crypto without sending resources from a centralised exchange.
Zeeshan Feroz, Chief Product and Strategy Officer at MoonPay, said that the integration is estimated to reduce the decline rate of direct crypto purchases in Nigeria from 90% to 30%.
In addition, he noted that customers from all banks in Nigeria will be able to access the service via wire transfer, a popular payment method in Nigerian e-commerce businesses.
Despite the current problems with crypto in Nigeria, the country has emerged as an important market for MetaMask, ranking third in terms of monthly active mobile users. Santos explained:
“It is also among the top ten countries regarding metamask.io visitors in the past month”.
