Payments processor PayPal is further integrating cryptocurrency into its services. The payments giant has now launched crypto-to-USD conversions (aka off-ramps) for customers in the U.S.
According to a blog on the PayPal website, the off-ramp service will increase access to digital currencies “by simplifying how wallets, dApps, and NFT marketplaces” interact with crypto. In turn, this will empower customers to more easily use cryptocurrency.
PayPal embracing crypto
In a statement released Monday, PayPal announced fiat currency off-ramps for customers in the U.S.
“By adding Off Ramps, crypto wallet users in the U.S. 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,” said PayPal.
The company made no mention of when the feature might roll out in other regions.
The integration of off-ramps is another significant milestone in PayPal’s long and ongoing embrace of crypto. The company first launched a feature for buying crypto in 2020 and later introduced the “checkout with crypto” feature. This feature makes it possible to convert crypto to fiat at the point of purchase.
Most recently, in August, the firm launched its own stablecoin pegged to the value of the U.S. dollar, PayPal USD (PYUSD).
PayPal USD controversy
PayPal’s dollar-pegged stablecoin is not without controversy. The launch of the cryptocurrency was aborted in February thanks to increased scrutiny from regulators.
Much of that scrutiny focused on PayPal’s stablecoin partner, Paxos. The SEC launched an investigation into Paxos in February due to its ties with Binance. Paxos issues BUSD, the dollar-pegged stablecoin of the Binance network.
The investigation was enough to throw a spanner in the works but not to halt the launch of PYUSD indefinitely. PYUSD launched on August 7, six months behind schedule.
That is not the end of the controversy surrounding PYUSD. As MetaNews previously reported, PayPal USD cannot be used to purchase goods directly. When consumers use PYUSD to purchase goods,s the coin is first converted to U.S. dollars.
While ordinary users may believe this is a distinction without great significance, the contrarian view is that PayPal USD’s limitations make it more akin to a marketing gimmick than a genuine stablecoin.
We are beyond thrilled to announce our latest feature: Sell.
Yes, you read that right. Available on MetaMask Portfolio, ‘Sell’ allows you to cash out your crypto for fiat currency easily.
— MetaMask 🦊 (@MetaMask) September 5, 2023
PayPal is not the only major player in town to recently announce crypto off-ramps.
Last week, crypto hot wallet MetaMask announced the launch of its sell feature, allowing users to cash out “crypto for fiat currency easily.”
Unlike PayPal, which is limited to the U.S. market, MetaMask is available in the U.S., U.K., and parts of Europe. The three supported currencies are the U.S. Dollar, the Euro, and the British Pound.
For now, the service will be limited to ETH on the Ethereum mainnet only. This will change in the future. MetaMask says it has “plans to expand to native gas tokens on layer 2 networks soon.”
MetaMask went on to add: “Ensuring a way for users to enter and exit crypto freely is important, and we hope these options make Web3 attainable to more people.”