In this article, you will learn what is MoonPay used for and MoonPay company history. MoonPay is a crypto payment service. It allows people to buy and sell cryptocurrency and NFTs using debit cards, credit cards and several other major payment methods. Launched in 2019, the payment service has risen to popularity, riding the waves of the burgeoning NFT market.
What is MoonPay used for?
MoonPay is a financial technology company that builds payments infrastructure for crypto. Our on-and-off-ramp suite of products provides a seamless experience for converting between fiat currencies and cryptocurrencies using all major payment methods including debit and credit card, local bank transfers, Apple Pay, Google Pay, and Samsung Pay. MoonPay is active in more than 160 countries and is trusted by 250+ leading wallets, websites, and applications to accept payments and defeat fraud.
The company recently revealed that it raised around $87 million in funding from A-List celebrities such as Justin Bieber, Snoop Dogg, Gwyneth Paltrow, Post Malone, Ashton Kutcher and many more.
So, what exactly is MoonPay?
As mentioned earlier, MoonPay is a payments service for cryptocurrencies and NFTs. What sets it apart from other payment services is that users can use fiat currency to complete crypto transactions. In technical terms, it is an on-ramp and off-ramp service.
On-ramp refers to the exchange of fiat currency for digital assets, and off-ramp is the other way around. Since MoonPay accepts fiat payments, it is able to offer its users several traditional payment methods to purchase digital assets. One can complete a transaction using a debit card, credit card, Apple Pay, Google Pay, Samsung Pay, etc.
How has MoonPay become so popular?
The convenience that MoonPay offers has made it a popular service for retail investors and celebrities alike. According to the company website, the platform currently has more than 10 million active users, spread over 160 countries and has completed almost $3 billion in transactions.
MoonPay was the go-to payment service when NFTs shot into popularity. Users could purchase their favorite NFTs without the hassle of owning cryptocurrencies. The platform gained even more popularity when celebs started using it to buy artworks from the infamous Bored Ape Yacht Club (BAYC) NFT collection.
The BAYC collection features 10,000 digital portraits of bored-looking apes with customisable accessories. When they were first introduced, they sold at $250 each. However, they were a massive hit amongst celebrities, and the current asking price for a Bored Ape is around $300,000.
In a typical exchange, you would have to first to own a wallet, add an equivalent amount of cryptocurrency and then make the purchase -- a trivial, time-consuming process. With MoonPay, the process is much easier. All the user needs to do is name a budget. MoonPay then uses its rarity tools to arrive at a benchmark price for the digital asset.
MoonPay handles the process of buying the required crypto, then purchases the NFT and invoices the customer.
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Thanks to its convenience, celebrities flocked to the platform to purchase coveted NFTs, such as the BAYC collection. Some celebs would also thank the platform for their service through tweets and this set off a chain reaction of sorts.
Popular rapper Post Malone, who purchased two BAYC NFTs through the platform, even included MoonPay in one of his music videos. In the video for "One Right Now", Post is seen purchasing a Bored Ape on the MoonPay platform.
MoonPay Company History
MoonPay, which is headquartered in Miami, Florida, was founded in 2018 by Ivan Soto-Wright and Victor Faramond.
Soto-Wright, who graduated from The George Washington University with a bachelor’s degree in economics, began his career at London-based financial consultancy Redington in 2012.
At Redington, he was mainly working as an independent advisor to pension funds and other long-term institutional investors.
He had previously met Redington’s founder Robert Gardner while studying abroad at Oxford University which he was able to attend due to his prowess in rowing.
After three years at the company, he finally took the plunge and launched his first business dubbed Saveable.
Bottom Line
MoonPay makes money via processing fees, payment fees, as well as a concierge service offered to wealthy clients. MoonPay being one of the famous payment services, you should know what is MoonPay used for and MoonPay company history.
