PayPal (Nasdaq: PYPL), a big name in the payments industry, has expanded its support for cryptocurrency companies with the latest launch of off-ramp services in the United States. It is an extension to the already available on-ramp services that PayPal has previously been offering for purchasing cryptocurrencies.
PayPal On and Off-Ramps
Announced today (Tuesday), PayPal on and off ramps can be integrated with wallets, dApps, and NFT marketplaces, allowing customers to purchase or sell cryptos with fiats. PayPal is specifically targeting Web3 merchants with the new service.
“Once integrated, web3 merchants can help grow their user base by connecting to PayPal’s fast and seamless payments experience trusted by millions, while leveraging PayPal’s robust security controls and tools for fraud management, chargebacks, and disputes,” the company stated.
Popular Payments Services in the Crypto World
On and off-ramps allow crypto platforms to bypass regulations around fiats, enabling customers to buy or sell cryptocurrencies. With on-ramp, the crypto platforms can offer the purchase of the cryptocurrencies with fiat, while off-ramp allows customers to receive fiats directly after selling their crypto holdings. As the crypto platforms do not handle fiats directly, they avoid the strict regulations associated with such payments.
On and off-ramp services are very popular in the crypto industry. Major cryptocurrency crypto exchanges offering crypto-to-crypto trading also use these services to add fiat support. The US arm of Binance recently partnered with MoonPay to add on-ramp fiat payment services on its platform, where USDT is the base currency.
“By adding Off Ramps, crypto wallet users in the US can convert their crypto to USD directly from their wallets into their PayPal balance so they can shop, send, save, or transfer to their bank or debit card,” PayPal added.
Many crypto exchanges have been using PayPal’s on-ramp services for a number of years now. The company entered the cryptocurrency market directly in 2021 by allowing customers to buy and sell cryptocurrencies on its platform. Although the services were first introduced in the United States, the company later expanded to the United Kingdom.
PayPal further amplified its exposure in the cryptocurrency industry after it launched a US dollar-backed stablecoin, called PayPal USD (PYUSD), earlier this year in partnership with Paxos.
This article was written by Arnab Shome at www.financemagnates.com.
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