MoonPay Expands PayPal Integration to EU and UK, Simplifying Crypto Purchases
MoonPay has announced the expansion of its partnership with PayPal, allowing users in 24 European Union member states and the United Kingdom to purchase cryptocurrencies using their PayPal accounts. This move follows a successful launch in the United States, where PayPal quickly became the third most popular payment method for MoonPay users, trailing only behind traditional bank cards and Apple Pay.
The initial U.S. rollout showcased a strong demand for PayPal as a payment option for purchasing crypto. Nearly 90% of users who connected their PayPal accounts to MoonPay proceeded with transactions, and new customers using PayPal as their first payment method converted at a rate 1.3 times higher than those using traditional cards. This integration has also attracted a more mature demographic, with an average user age of 35 years old.
MoonPay’s CEO and co-founder, Ivan Soto-Wright, emphasized the significance of this partnership, stating, “The success of our PayPal partnership speaks volumes about the value we’re creating together. Expanding our collaboration to new markets is an incredibly exciting milestone for us. This move will enable us to provide a frictionless experience and lower the barriers to entry to include new users around the world, bringing convenience and trust to our growing customer base.”
The PayPal integration simplifies the transaction process for MoonPay users with existing PayPal accounts. Users can fund their cryptocurrency purchases using their PayPal balance, direct bank withdrawals, or debit cards, all without the need to manually enter payment details. This streamlined approach enhances user experience and lowers entry barriers for new customers.
Currently, the PayPal integration is live for 1% of MoonPay customers in the UK and EU, with a full rollout planned over the coming weeks. The service will not be available to residents of Croatia, Hungary, and Iceland. This phased approach ensures a smooth transition and allows MoonPay to address any potential issues on a smaller scale before expanding to the broader user base.
MoonPay’s expansion strategy also includes rapid integration of PayPal with its numerous partners, including Uniswap, Phantom, BitPay, Changelly, xPortal, Zengo, SafePal, and LOBSTR. This broad network of partnerships further amplifies the reach and convenience of the PayPal integration, providing users across multiple platforms with an easy and reliable way to purchase cryptocurrencies.
PayPal’s entry into the cryptocurrency ecosystem has been significant. In August 2023, PayPal introduced its U.S. dollar stablecoin, PayPal USD (PYUSD), backed 1:1 by cash and short-term cash equivalents. Initially launched on the Ethereum network as an ERC-20 token, PYUSD faced limitations due to Ethereum’s low transaction throughput and high fees. In May 2024, PayPal deployed PYUSD on the Solana network to leverage Solana’s high throughput and low transaction costs, aiming to facilitate the stablecoin’s use for everyday purchases and personal transactions.
The Solana deployment also introduced a new privacy feature called “confidential transfers,” allowing merchants to hide transaction amounts from the public while remaining compliant with regulatory reporting requirements. This feature addresses privacy concerns while maintaining transparency and regulatory compliance.
The role of stablecoins like PYUSD is pivotal in the crypto market. These digital representations of fiat currencies, backed by real cash reserves, provide liquidity, lower transaction costs, and offer efficient solutions for cross-border payments. They also expand banking services to underserved areas, contributing to broader financial inclusion.
