PayPal, an American financial technology company, is taking another step into Web3 with the launch of its cryptocurrency off ramps. With the new technology, users and merchants in the United States will be able to convert crypto into USD, allowing for easy cash out options. The company announced the launch with a blog post and video:
According to the blog post, PayPal Off Ramps is available to Web3 wallets, decentralized applications, and NFT marketplaces. It is also live on MetaMask, the world’s most popular crypto hot wallet. With Off Ramps, users can transfer their cashed-out crypto directly to their bank or debit cards, an easy solution for a sometimes-complex problem.
PayPal highlights that Off Ramps will be particularly beneficial because the company provides solutions for Know-Your-Customer and Anti-Money Laundering compliance, which are often sticking points for merchants that must navigate a difficult U.S. regulatory landscape.
PayPal also cites its “robust security controls” and “tools for fraud management, chargebacks, and disputes” as reasons why merchants should sign up. Off Ramps complement the company’s existing On Ramps service, which allows PayPal users to buy crypto through integrations with MetaMask and Ledger.
PayPal Bets Big on Web3, Launches USD Stablecoin
PayPal bills itself as a fintech company, so perhaps it comes as no surprise that it is entering Web3. But even among innovative, open-minded companies, it has made waves in the past two months. The big news that rolled out in August was the launch of its USD stablecoin called PYUSD.
According to the announcement at that time, PYUSD had most of the features of a standard USD stablecoin: pegged to the U.S. dollar, backed by reserves like a treasury, and it offers users the ability to transfer the token as well as settle payments with it. It came with bullishness for the space: A PayPal executive said that when the company looked back in five years, the launch of PYUSD might be the most innovative thing it had done.
Unsurprisingly, the crypto community had its critical take of the token: the centralization, ability to wipe out funds with a click of a button, and the old Solidity code the contract was written in. And so far, PYUSD is struggling to gain traction, with a market cap far below the top stablecoins.
But the move shows one thing is certain: PayPal is serious about Web3 and wants to spur adoption in the space. That is bullish news in a deep bear market that has seen stagnant prices. With new tech like the kind PayPal is offering, maybe widespread adoption of crypto in the U.S. is inevitable. Rarity Sniper certainly hopes so.