PayPal simplifies the purchase of Ethereum

Payment service provider PayPal and crypto wallet Metamask have now announced the start of a new cooperation. A few select US customers can initially purchase Ethereum (ETH) cryptocurrency through their existing PayPal account. Previously, PayPal already offered conditional trading opportunities for some of the digital currencies in the United States. The announcement now offers for the first time the possibility to buy coins directly with your own PayPal account. A feature that was until now reserved for the most regulated crypto exchanges.

This is how buying crypto works

Interested customers first need a wallet from Metamask to make a purchase. In order to fill them, it was common to go through a crypto exchange like Coinbase, Binance or the discredited FTX. However, all of these exchanges use the so-called KYC procedure for registration. The abbreviation stands for “Know your Customer” – i.e. the fact that a whole range of personal information must first be presented for identification.

Through cooperation, however, this step can be avoided and ETH coins can be purchased without additional registrations. For the payment method, select PayPal and be redirected to the existing customer account to complete the transaction.

Simplified entry into the world of cryto

Many Web3 services can then be used with the freshly filled Metamask wallet. Users can not only send and receive payments, but also buy NFTs or use applications such as the Metaverse or the so-called DAOs (Decentralized Autonomous Organizations).

The cooperation between the two financial services makes it much easier for crypto newbies to get started without the hurdles of the KYC process. Ultimately, this shouldn’t just guarantee more users for Metamask. PayPal also benefits from the cooperation, because, as TechCrunch suspects, fees will certainly be charged for transactions.

“Integration with PayPal will allow our US users to not only seamlessly purchase cryptocurrency through MetaMask, but also easily explore the Web3 ecosystem,” commented Lorenzo Santos, Product Manager at Metamask, during of the announcement. After a test phase for some US customers, the feature will initially roll out to the rest of the US. PayPal has had encryption features for US and UK customers in its wallet since late 2021. When and if the rest of the world will have access to it is currently unclear.

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