Regulation
MoonPay adds PayPal as a payment option for the UK and EU
MoonPay, a leading 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 onto the MoonPay platform, allowing customers across Europe to conveniently purchase cryptocurrencies.
The strategic move leverages PayPal’s market presence
The integration, already operational for 1% of European users, will be fully implemented in the coming weeks. However, it will exclude residents of Croatia, Iceland and Hungary.
This strategic move leverages PayPal’s notable market presence, recognized as the third most popular payment method in the United States, behind only Apple Pay and traditional bank cards.
MoonPay CEO and co-founder Ivan Soto-Wright highlighted that this integration aims to simplify the user experience and reduce barriers to entry, potentially increasing the platform’s user base globally.
The adaptation comes at a time when PayPal is increasing its presence 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 cash and short-term cash equivalents on a one-to-one basis.
Unlike other overcollateralized stablecoins such as Circle’s USDC and Tether’s USDT, the latter being 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 subsequently 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 complying with regulatory requirements.
This feature is intended to improve the usefulness 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 liquidity reserves.
These digital tokens play a crucial role in providing liquidity, reducing transaction costs and facilitating cross-border payments, especially in underserved regions.
MoonPay’s presence in the crypto space
MoonPay recently contributed to Coinbase’s non-profit support initiative, Support cryptocurrencies. While the donation amount remains secret, this commitment is part of MoonPay’s broader efforts to shape the future landscape of the cryptocurrency industry in the United States.
Source: Coinbase official website
This involvement is particularly timely given the growing legal and political challenges facing the sector.
For example, Coinbase, a major cryptocurrency exchange, successfully defended itself in a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in April 2024, which alleged violations of federal securities laws for listing certain tokens .
Additionally, Coinbase has been actively engaging with U.S. regulators to promote a regulatory framework that balances innovation with consumer protection.
Coinbase’s political commitment has been significant, launching 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 regulatory legislation and policy in Washington DC, further highlighting the interplay between technology, finance and politics in shaping the future of the cryptocurrency industry.
These developments highlight the dynamic nature of the cryptocurrency industry, where major players are not only innovating technologically but also strategically positioning themselves within the regulatory and political landscape.
MoonPay’s integration of PayPal for European users exemplifies how established payment methods are being incorporated into crypto platforms to improve user accessibility and trust.
At the same time, 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.