PayPal doubles down on crypto with “on and off-ramp” system

PayPal has expanded its range of cryptocurrency-related services as the payments behemoth continues to increase accessibility and utility for its extensive user base. A fresh feature introduced is the capability for PayPal wallet users to convert their cryptocurrencies into PayPal credit through an “on and off-ramp” system.


This expansion is part of PayPal’s ongoing efforts to strengthen its presence in the cryptocurrency space and offer a broader array of financial services. Importantly, this service extends beyond wallets and is also accessible to decentralized applications (dApps) and non-fungible token (NFT) marketplaces, further broadening the scope of cryptocurrency-to-fiat conversions.

Web3 merchants, in particular, are expected to benefit significantly from this integration. By leveraging these on and off ramps, they can tap into PayPal’s extensive user base, providing customers with a convenient and secure method to buy and sell supported cryptocurrencies. Additionally, PayPal has indicated that it will equip Web3 merchants with security controls and tools for fraud management, chargebacks, and disputes.

Previously, PayPal had launched “On Ramps,” enabling U.S. consumers to directly purchase cryptocurrencies with PayPal through integrations with platforms like MetaMask and Ledger. With the addition of “Off Ramps,” U.S. crypto wallet users can now convert their cryptocurrencies into USD directly from their wallets into their PayPal balance. This facilitates various financial activities such as shopping, money transfers, savings, or transferring funds to a bank or debit card.

Currently, PayPal Off Ramps is available to wallets, dApps, and NFT marketplaces, with MetaMask being among the platforms where it is live.

“Today we are taking another step in increasing access to digital currencies by simplifying how wallets, dApps, and NFT marketplaces can enable their customers to buy and sell supported crypto in the U.S. (subject to applicable state law) through an integration with PayPal On and Off Ramps. Once integrated, web3 merchants can help grow their user base by connecting to PayPal’s fast and seamless payments experience trusted by millions,” the company said in a statement.

In august, PayPal introduced an update to its terms and conditions, unveiling the Cryptocurrencies Hub feature. This new offering enables users to hold and engage with Bitcoin (BTC) and other cryptocurrencies directly within their PayPal accounts.

Under the hood, PayPal leverages the expertise of stablecoin issuer Paxos Trust and other authorized providers to offer some integral custody, trading, and transfer services. The Cryptocurrencies Hub assumes a crucial role in the conversion between the PayPal-backed stablecoin, PayPal USD (PYUSD), and other cryptocurrencies. The payment giant clarified that while the balance in the hub represents ownership of each crypto asset’s value, actual possession of the underlying coins does not occur within the balance.