Regulation
MoonPay adds PayPal as a payment option for UK and EU
MoonPay, a major player in the cryptocurrency payments industry, recently announced a significant expansion of its service offerings in the European Union and the United Kingdom.
This expansion includes the integration of PayPal as a new fiat on-ramp on the MoonPay platform, allowing customers across Europe to easily purchase cryptocurrencies.
This strategic move leverages PayPal’s presence in the market
The integration, already operational for 1% of European users, should be fully deployed in the coming weeks. However, this will exclude residents of Croatia, Iceland and Hungary.
This strategic move builds on PayPal’s considerable market presence, recognized as the third most popular payment method in the United States, behind Apple Pay and traditional credit cards.
MoonPay CEO and co-founder Ivan Soto-Wright highlighted that this integration aims to streamline the user experience and reduce barriers to entry, potentially increasing the platform’s user base at scale. worldwide.
Adaptation comes at a time when PayPal increases its footprint in the digital currency space. Notably, in August 2023, PayPal ventured into the stablecoin market with the launch of PayPal USD, a US dollar stablecoin backed by short-term cash and cash equivalents on a one-to-one basis.
Unlike other supersized stablecoins like Circle’s USDC and Tether’s USDT, the latter of which is the largest by market capitalization, PayPal USD was initially launched on Ethereum as an ERC-20 token.
Due to Ethereum’s limited transaction capacity and high costs, PayPal later expanded its stablecoin operations to the Solana network in May 2024 to benefit from its higher throughput and lower transaction costs.
Additionally, PayPal announced that its stablecoin on Solana will feature “confidential transfers,” a privacy option that allows merchants to hide the transaction amount from public view while still complying with regulatory requirements.
This feature aims to improve the utility of the stablecoin for regular transactions and personal use.
Stablecoins serve as digital representations of fiat currencies and can be backed by tangible financial reserves or be algorithmic without cash reserves.
These digital tokens play a crucial role in providing liquidity, reducing transaction costs and facilitating cross-border payments, especially in underserved regions.
Presence of MoonPay in the crypto space
MoonPay recently contributed to Coinbase’s nonprofit advocacy initiative, Stick with crypto. Although the amount of the donation is not disclosed, this commitment is part of MoonPay’s broader efforts to shape the future landscape of the U.S. cryptocurrency industry.
Source: Coinbase official website
This participation is timely given the growing legal and policy challenges facing the industry.
For example, Coinbase, a major cryptocurrency exchange, successfully defended itself in a lawsuit filed by the United States Securities and Exchange Commission (SEC) in April 2024, alleging violations of federal securities laws for the listing of certain tokens.
Additionally, Coinbase has actively engaged with U.S. regulators to foster a regulatory framework that balances innovation and consumer protection.
Coinbase’s political engagement has been significant, with the launch of a political action committee (PAC) through its Stand With Crypto project.
The PAC, announced in May via social media platform
This initiative by MoonPay aligns with Coinbase’s ongoing efforts to influence legislation and regulatory policies in Washington DC, further highlighting the interplay between technology, finance and politics to shape the future of the cryptocurrency industry.
These developments highlight the dynamic nature of the cryptocurrency sector, in which major players are not only innovating technologically, but also strategically positioning themselves in the regulatory and policy landscape.
MoonPay’s PayPal integration for European users illustrates how established payment methods are being integrated with crypto platforms to improve accessibility and user trust.
Meanwhile, PayPal’s expansion of its stablecoin to more efficient networks like Solana and the introduction of privacy features indicate a growing emphasis on convenient and secure digital currency solutions.