MoonPay has just unveiled a new feature that allows customers in the European Union and the United Kingdom to easily purchase cryptocurrency using PayPal. This integration will soon be available to customers all across Europe, providing a convenient payment option within the MoonPay platform.
Currently, the integration is accessible to 1% of European users, with plans for a full rollout in the upcoming weeks. However, residents of Croatia, Iceland, and Hungary will not have access to this feature.
In a recent press release, MoonPay highlighted PayPal’s popularity as the third-most used payment method in the United States, following Apple Pay and traditional bank cards. Ivan Soto-Wright, the CEO and co-founder of MoonPay, emphasized the ease of use that PayPal brings to new customers.
Customers in 48 U.S. states, excluding New York and Texas, already have the option to use PayPal as a fiat on-ramp for MoonPay.
PayPal made headlines back in August 2023 when it introduced its U.S. dollar stablecoin, PayPal USD (PYUSD). This stablecoin is fully backed by cash and short-term cash equivalents at a 1:1 ratio. Other stablecoins like Circle’s USDC and Tether’s USDT also operate on overcollateralization principles.
In May 2024, PayPal took a step further by deploying PYUSD on the Solana network to take advantage of Solana’s high throughput and low transaction costs. This move aimed to make the stablecoin more accessible for everyday transactions and purchases.
Originally launched on Ethereum as an ERC-20 token, PYUSD faced limitations due to Ethereum’s network congestion and high costs. With the shift to Solana, PayPal also introduced additional privacy features, such as “confidential transfers,” allowing merchants to protect transaction amounts while still complying with regulations.
Stablecoins play a crucial role in the digital economy as they provide a secure and efficient means of representing fiat currencies. Whether backed by cash reserves or operating algorithmically, stablecoins offer liquidity, lower transaction costs, and improve cross-border payments, ultimately expanding financial services to underserved areas.