PayPal and its subsidiary, Venmo, have integrated Ethereum Name Service (ENS) into their online payment services, making cryptocurrency transfers easier.
ENS, an open-source protocol, simplifies Ethereum addresses by replacing them with user-friendly names. Initially available to users in the US, this feature allows sending and receiving cryptocurrency using ENS names.
PayPal, Venmo Partner with ENS Labs for Crypto Payments
With the ENS integration, over 270 million US users will be able to transfer cryptocurrency using simplified blockchain addresses. This eliminates the need for complex wallet addresses, reducing the risk of transaction errors.
Instead of manually entering long alphanumeric wallet addresses or scanning QR codes, users can simply input an ENS name like “username.eth” into payment services like PayPal or Venmo. The system will then automatically retrieve and verify the associated Ethereum wallet address.
“Simplifying crypto transfers through platforms like Venmo and PayPal using ENS names can significantly lower the entry barrier for everyday users. Instead of dealing with complex alphanumeric wallet addresses, users can send and receive crypto with simple, easy-to-remember names. This approach can speed up mainstream adoption, allowing people to use cryptocurrencies without in-depth technical knowledge,” WeFi Co-founder Maksym Sakharov told BeInCrypto.
Established in 2017, ENS is the result of an Ethereum grant. It has grown steadily over the years to register more than 2 million names on-chain and 4 million off-chain.
Read more: How To Buy PayPal Stablecoin (PYUSD)
This latest development adds to ENS’s ongoing efforts to improve the usability of its domain names. Earlier in February, ENS collaborated with web domain registrar GoDaddy, following legal challenges, to link ENS names (.eth) to GoDaddy’s traditional domains. This allowed users to connect a .eth domain name directly to an Ethereum wallet address.
“This is a small step for PayPal and Venmo, but a huge leap for crypto adoption. Personally, I use ENS, and it’s infinitely faster and more convenient to send funds by simply entering a nickname, compared to copy-pasting an address, double-checking for errors, or worrying about malware altering it. For newcomers transitioning from traditional finance, which has long prioritized ease of use, this simplifies things dramatically”, Paybis Co-founder Konstantin Vasilenko said.
In May, ENS Labs took another significant step by migrating to a Layer-2 network. This move lowered gas fees and improved transaction speeds, further simplifying Ethereum address management.
Similarly, PayPal and Venmo have been advancing their cryptocurrency support since 2021. In May, they partnered with MoonPay, allowing US users to make fiat-to-crypto purchases using PayPal for bank transfers, wallets, or debit cards.
PayPal’s launch of its PYUSD stablecoin on Venmo marked another milestone, enabling seamless transfers between the two platforms. BeInCrypto also noted PYUSD’s rapid growth following its expansion to the Solana blockchain in late May.
Read More: 7 Best Crypto Platforms To Buy PayPal Stablecoin (PYUSD)
Meanwhile, ENS is entangled in a patent dispute. In May, it filed a petition with the U.S. Patent and Trademark Office (USPTO) against Unstoppable Domains, alleging that the company’s patent infringes on ENS’s open-source technology.
“In 2023 Unstoppable Domains (UD) obtained a patent for technology ENS Labs developed as open-source. Today, we petitioned USPTO to challenge the validity of that patent, and to ensure the web remains a collaborative space,” ENS said in May.
The recent announcement regarding ENS’s integration PayPal and Venmo has positively impacted the token’s price. BeInCrypto data shows ENS is trading at $16.96 as of this writing, up nearly 2% since Wednesday’s session opened.
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