What is Moonpay App? What is Moonpay used for?

Moonpay app aims to build the easiest ramp between our legacy financial system of fiat currencies and the digital cryptocurrencies such as Bitcoin/Eth. Basically the Moonpay app allows people to use their Visa and Mastercard credit cards to buy crypto – you can use it at OpenSea, Bitcoin.cm, Abra or any of the various active crypto platforms.

Launched in 2019 by Ivan Soto-Wright and Victor Faramond, Moonpay is rumored to have received a $400m funding round from Tiger Global, valuing Moonpay app at a whopping $3.4bn.

How did Moonpay get started?

Co-founder and CEO, Ivan was based out of London when companies like Revolut, Transferwise were being built and was drawn into the fintech space. Wanting to be a part of the ecosystem, Ivan first launched Saveable with the simple goal of getting people in the habit of saving – building a then novel ‘open banking’ technology that automatically transferred a % of income into savings by connecting bank accounts to savings account.

In 2017, the the peak bitcoin frency with all its wild price fluctuations captured his fancy and he researched and found crypto as a gateway to build the a bigger and better open banking system.

With his co-founder Victor Faramond, Ivan first built a consumer crypto wallet with a great, slick mobile experience, in the process realizing the various friction points for consumers in the space. While facing challenges in trying to scale the wallet, amongst a plethora of other crypto wallets, Bitcoin.com stumbled upon the Moonpay wallet and reached out to Ivan. Bitcoin.com was impressed with the quick and sleek onboarding process at Moonpay app. Many discussions later, Ivan and Viktor were tasked with improving the clunky onboarding processes for users on Bitcoin.com.

Realizing the universal nature of the problem and the entire ecosystem needing an ‘on-ramp’ technology, the duo then dumped their own wallet and set out to build an API from scratch to enable consumers to go from debit and credit card to cryptocurrency.

Almost entirely bootstrapped, Moonpay has grown to over 80 global employees, before taking in the first round of funding from Tiger Global. Moonpay now enables over 250 partners in 170 countries to integrate cryptocurrencies into payment solutions and provides a simple entry point into the crypto market.

What is unique about Moonpay?

Moonpay offers a straightforward way for people to be introduced to crypto by offering easy, instant, non-custodial purchases of various currencies – essentially you don’t need to go an exchange, undergo its KYC process and then transfer funds to a crypto wallet – but can directly transact via the Monpay infrastructure.

The creation of a fairer financial ecosystem is the end-goal of MoonPay – with over a billion people in the world who are unbanked, Moonpay (and the entire crypto ecosystem at large) provides an opportunity to create a crypto wallet which will function like a bank account – essentially enabling you to make transactions, send and accept remittances etc.

What are consumers saying about Moonpay?

Having processed over 1 billion transactions over the Moonpay, the company has grown tremendously in 3 years. The company’s north star metric is to bring a billion people into crypto.

However, like any growing startup, Moonpay has been plagued with growing pains. Complaints of being locked out of accounts, unable to transact for a few hours in a bull crypto market and adhoc trading limitations have flooded social media. With crypto-enthusiasts and speculators pumping up coins, Moonpay has resorted to asking for proof of income so that people don’t keep maxing out their credit cards to buy crypto.

What does the future hold for Moonpay app?

One way to think about Moonpay, is like a giant optimization process making it easier for users to go A to B in the crypto space. This includes many layers of optimizations, including KYC, payment stacks, dealing with legacy banks on transaction classifications etc.

Legacy financial systems have high transactions costs as a result of various systems being built independently which are not talking to each other. Currently crypto ecosystem is much more efficient for macro transactions – mobbing a billion dollars is way cheaper on crypto than the legacy systems.  What the entire crypto ecosystem is trying to solve for is to lower the transaction costs for microtransactions so that people can buy a coffee using crypto.

As the company scales, the economics will get better for users. Moonpay sees itself as an accelerator of global money movement becoming more efficient as it connects with every single payment system in every single geography.

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