Unlocking Crypto for Half a Billion People: Inside MoonPay and PayPal's Partnership
Unlocking Crypto for Half a Billion People: Inside MoonPay and PayPal's Partnership
In April, MoonPay and PayPal launched a partnership to onboard nearly 500M PayPal users to crypto. Why this is the most underrated news of the year for consumer crypto.
In April, MoonPay and PayPal launched a partnership to onboard nearly 500M PayPal users to crypto. This partnership is one of the biggest and most underrated news stories of the year.
In short: This integration grants PayPal users access to 110+ cryptocurrencies, and gives MoonPay users (and users of MoonPay partners across the crypto ecosystem) the ability to seamlessly fund their purchases through their PayPal accounts. This is different than any other solutions which limit PayPal purchases to PYUSD, BTC, or ETH.
Are you getting it?
Yes, this also means that you can now buy bitcoin, ethereum, solana and more with PayPal.
Plus it solves one of crypto’s biggest problems: Easy and seamless access.
It’s massive. And today, we’re going to unpack this:
Key highlights
Who’s MoonPay?
MoonPay x PayPal: Why it matters
What’s Next
Let’s dive in. 🦈
Key Highlights
MoonPay, a leading crypto on-ramp and off-ramp provider and a blockchain payments infrastructure firm, has become the bridge between traditional money and crypto with over 20M verified accounts.
Just in the first half of 2024, MoonPay onboarded 550K new crypto users to the ecosystem.
Their latest move? Partnering with PayPal.
Highlights:
MoonPay is the first and only on- and off-ramp provider to integrate PayPal, offering a frictionless crypto experience for all PayPal users in the U.S., UK and EU to buy, sell or swap.
Unlike other solutions which limit PayPal purchases to PYUSD or ETH, with MoonPay, PayPal users now have the freedom to buy and sell 110+ different cryptocurrencies
Significance: This partnership allows 426M PayPal users to enter the crypto ecosystem and buy, sell, or swap 110+ different cryptocurrencies through PayPal’s platform.
Plus: It streamlines transactions for new users who already have a PayPal account. Existing PayPal users won’t need to manually input their card information when they buy cryptocurrency on MoonPay or partners across the ecosystem.
There’s more: Other crypto companies including Coinbase, MetaMask, and Phantom have also integrated PayPal into their payment offerings. MoonPay, however, is the first on and off-ramp provider to integrate PayPal and extend this functionality to its vast partner network of over 300 wallets and websites, including Uniswap, SafePal, BitPay, and others, offering a competitive edge in the market.
This essentially directly facilitates traditional finance players to connect to large parts of the crypto ecosystem through MoonPay.
Let that sink in.
But wait, how does this work exactly?
Let’s break it down: When someone buys cryptocurrency on Uniswap using PayPal, MoonPay acts as the bridge between the traditional financial system and digital currencies:
MoonPay facilitates the entire payment process, selling a cryptocurrency to the PayPal user, which they can swap on Uniswap.
MoonPay ensures that the user’s initial purchase complies with all relevant regulations, including Know Your Customer (KYC) and Anti-Money Laundering (AML) checks.
Be smart: The PayPal and MoonPay partnership does not directly integrate crypto purchases into the PayPal app. But MoonPay's extensive network allows platforms like Uniswap, MetaMask, and BitPay to offer PayPal as a payment option instantly through MoonPay. Competitors like Coinbase have not done this.
Who’s MoonPay?
Founded in 2019 by Ivan and Victor, MoonPay has become a favorite among crypto consumers due to their focus on simplifying the experience for users.
Here’s how they’re doing it:
User-Friendly App: Buy, Sell, Swap and manage multiple assets in one app.
Cross-chain Swaps: Efficient two-step process that minimize gas fees and number of operations needed to swap over 1,500 trading pairs.
MoonPay Checkout: Allows users to buy NFTs with just a card on platforms like OpenSea, Magic Eden, ENS, and Sweet.io, expanding market reach and simplifying the purchasing process.
The numbers prove them right.
Bird’s Eye View on Performance: H1 2024 marked a record quarter for MoonPay driven by:
Strategic Partnerships: Partnered with some of the biggest names in web3 such as Bitkey, Airtm, Base, Ledger, TonKeeper, and Photon, along with top brands like Adidas, Christie's, Gucci, Mastercard, Nike, and Puma. These partners use MoonPay’s web3 tools for authentication, advanced token-gating, ticketing and more. Each partnership acts like a LEGO piece, connecting and allowing access to new audiences.
Regulatory Expansion: Increased global regulatory footprint with a total of 44 Money Transmitter Licenses (MTLs) in the US, including the latest approval in Louisiana and registrations in the UK, Ireland, Italy, Liechtenstein, and Canada. This increased footprint adds substantial value for partners, offering market access without the regulatory headaches.
What drove MoonPay’s momentum?
MoonPay aims to simplify the crypto onboarding process.
They make it easy for consumers to buy and sell cryptocurrencies using familiar payment methods like PayPal, debit and credit cards, bank transfers, Apple Pay, Google Pay, and mobile wallets. This approach has been crucial in attracting new users.
Additionally, MoonPay's integration with over 300 wallets and websites, allows native crypto users to buy crypto without leaving their preferred wallet or exchange interface. This seamless experience has helped MoonPay gain the trust and loyalty of both new and seasoned crypto users.
Keeping up with the market: Recently, MoonPay launched “Web3 Tools” to keep up with corporate adoption.
In May, MoonPay launched Web3 Tools, a platform designed to simplify blockchain initiatives for brands
It combines features like authentication, identity verification, token-gating, collectibles, and ticketing.
MoonPay has built this platform using technologies from its acquisitions of ethpass, Plex Labs, and Nifty’s.
There’s more:
MoonPay Checkout: In response to the growing NFT market, MoonPay launched an NFT-specific checkout solution. This allows brands and marketplaces to offer easy NFT purchases with walletless checkout and integrated payments.
Mobile App: MoonPay’s solutions are mobile-friendly. Their app, available in 130 countries, supports over 100 cryptocurrencies.
Regulatory Compliance: MoonPay adheres to all applicable regulatory requirements and has implemented robust AML and KYC controls.
MoonPay x PayPal: Why It Matters
This partnership is a major milestone.
For the first time, crypto is entering mainstream consumer finance. A crypto application reaching nearly 500 million users with 110+ cryptocurrencies instantly is unprecedented in recent times.
With PayPal's history and reputation in traditional finance, this partnership also adds an extra layer of familiarity and trust.
In short: It solves one of crypto’s biggest problems: Easy, seamless access to digital assets.
Let’s break this down. Here's why this partnership is significant:
Unmatched reach: By tapping into PayPal’s user base of nearly 500M people, MoonPay surpasses any other on-ramp provider currently in the market (e.g. Transak, Banxa, Simplex, Mercuryo, Stripe, and Coinbase Pay).
Streamlined crypto on-ramp: While not directly integrated into the PayPal app, the partnership allows PayPal users to easily buy and sell cryptocurrencies from MoonPay through all of its partner integrations.
By integrating PayPal, we are enabling consumers to transact with crypto in an already familiar environment and significantly lower the barrier to entry for new users."
— Ivan Soto-Wright, Co-founder and CEO, MoonPay.
Increased accessibility: PayPal operates in over 200 markets worldwide, including many regions with limited access to traditional financial services. However, PayPal is still primarily used in Western developed countries (for example - United States: 278M users, UK: 56M users, and Italy: 22M users). PayPal currently unlocks an older demographic, with the average age of customers being 39 years old which is 8 years older than Apple Pay customers and 2 years older than card customers. In general, older generations, particularly Baby Boomers, are more likely to use and trust PayPal.
Data privacy & fraud prevention: Traditionally, buying crypto on external platforms required users to create separate accounts and share sensitive financial information. With the integration, PayPal customers can use their existing accounts and payment methods, eliminating the need to repeatedly provide this information.
Enhanced trust & security: PayPal's long-standing reputation for security and reliability in the traditional financial sector adds a layer of trust that many crypto-native platforms lack. The PayPal trust factor can boost user confidence in the crypto buying process, especially for those who may be hesitant to share their information with lesser-known platforms.
MoonPay first launched their integration with PayPal in May 2024 for users in the United States. By June 2024, MoonPay expanded to the UK and most of the EU.
Bold Numbers: PayPal is Paying Off
Here’s why this was a smart move for both MoonPay and PayPal.
MoonPay has:
Access to PayPal's nearly 500 million customers
Higher transaction success rates
Enhanced security through PayPal's infrastructure
And PayPal benefits from:
More choices for users
Leverage MoonPay's robust security
Access to 110+ digital currencies and 300+ partners through MoonPay
Let’s look at a more detailed breakdown of MoonPay performance numbers since launching the partnership in May 2024:
Punchline: This partnership between MoonPay and PayPal is a monumental step in bringing cryptocurrency into mainstream adoption. The integration also leverages PayPal's established reputation in the traditional financial market.
What’s Next
Key to further crypto adoption will be easy, regulatory compliant access.
A major focus lies in simplifying in-app purchases. This trend is seen in Farcaster's partnership with Base, the launch of Solana Blinks, and the integration of Telegram Payments. Recently, Stripe added support for Coinbase Base, to allow Stripe’s network access to faster and cheaper money transfers and payouts. These efforts show a growing emphasis on integrating payment solutions directly into apps, making transactions easier and more user-friendly.
The partnership with PayPal positions MoonPay as a leading on-ramp provider, potentially outpacing competitors like Transak, Banxa, and Simplex due to PayPal's vast user base and established trust.
It also sends a clear message to other payment providers and challenger banks that they need to adapt to the growing demand for crypto services or risk losing market share.
Again: This partnership is one of the biggest and most underrated news stories of the year.
It allows almost 500M people to seamlessly fund their purchases through their PayPal accounts.
Boom. 💥
That’s all for now, folks. Thank you for being part of the journey.
Talk soon,
– Marc
PS: Follow me on LinkedIn and X for shorter insights.
This article is published in collaboration with MoonPay. As the author, I maintain full editorial integrity and the views and insights expressed are my own, ensuring the content remains unbiased and authentic.
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