ConsenSys announced a new on-ramp to Ethereum via a feature to integrate PayPal purchases of ether on MetaMaskās mobile app, with a browser integration targeting the first quarter of 2023.
The mobile MetaMask app wallet developer plans toĀ enableĀ a select number of US users to fund their wallets with ether (ETH) by transferring ETH they hold on PayPal or by purchasing the cryptoasset using Paypal-linked bank accounts.Ā
Eligibility will be increased to all US customers āin the coming weeksā ConsenSys said in a blog post.
PayPal has allowed users to buy, sell and hold crypto since 2020 and to ācheck out with cryptoā for online purchases using bitcoin, ether, litecoin and bitcoin cash since 2020.
Last week, PayPal competitorĀ Stripe launched its own fiat-to-crypto on-ramp, allowing customers to exchange dollars for cryptocurrencies.Ā
Existing on-ramps for users who tap the buy button on the MetaMask app include instant bank transfer, Apple Pay, or a debit or credit card. Soon PayPal will be an additional option. MetaMaskās 1% service fee is applied to purchases, according to the company.
A Web3 company founder Adam HollanderĀ tweetedĀ that this PayPalās new feature āknocks down a meaningful barrier to entry for NFTs.āĀ
ConsenSys recentlyĀ came under fire for updates to its privacy policyĀ in connection with two of its core products ā MetaMask and Infura ā when the company said last month that collecting and storing usersā wallet and IP addresses was standard, alarming many of its customers.
The company later backtracked, stating that it will only hold user wallet and IP addresses for one week after a transaction is made.Ā
Regarding the new PayPal partnership, MetaMaskās product manager Lorenzo Santos told Blockworks that āMetaMask never collects or processes KYC [know-your-customer] data or payment details.ā He views the integration as an opportunity to onboard hundreds of millions of users to Web3 who have already entrusted their payment details to PayPal.
While the Web3 and crypto community has been hesitant to adopt KYC processes on privacy grounds, many money services businesses, including US-regulated centralized exchanges such as Coinbase, require it.