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Paxful and Binance taking crypto to the Unbanked

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Many governments around the world have completely restricted the buying and selling of cryptocurrencies using a bank account. This has resulted in quite a few businesses closing down. The regulatory constraints became the foundation of a different ecosystem called the peer-to-peer (p2p) system which allowed the people to get around the regulatory blockade.

Since private cryptocurrencies like Bitcoin and Ethereum aren’t considered a currency in most of the nations, it makes it really hard for people to access cryptocurrencies. Using a peer-to-peer marketplace lets you purchase cryptocurrencies by paying someone, who then transfers the cryptocurrency in your wallet.

One of the most popular P2P marketplaces is the NewYork based company, Paxful Inc. The marketplace became really popular very recently, in multiple countries like Nigeria, Ghana, Kenya, U.S. and India over the year.  The company noted that it added 800,000+ wallets over the last 12 months and have a base of 3 million wallets.

Countries that are “restricted by traditional financing” like Nigeria, Ghana, and Kenya are Paxful’s “big markets” as people in these African countries often look towards cryptocurrencies to tackle the financial hurdles.

As Bitcoin is the most used cryptocurrency and the most renowned one, Paxful only supports Bitcoin on its platform and wants to stay that way. Paxful co-founder and COO, Artur Schaback believes:

“We believe that there should only be one cryptocurrency to make the financial revolution happen.”

The latest reports state that the P2P marketplace has partnered with the major cryptocurrency exchange Binance. This partnership would allow Paxful to act as a fiat payment gateway for Binance. This would allow Binance to be more accessible across the globe.

Paxful currently supports multiple fiat currencies like the Russian ruble, Vietnamese dong, Indonesian rupiah, Nigerian naira, Colombian peso, British pound, Mexican peso, Canadian dollar, euro, Argentine peso.

Speaking of this partnership, Binance CEO Changpeng Zhao said:

“This marks a significant partnership between a crypto exchange and peer-to-peer platform where a new pool of users will have access to alternative fiat payment methods available on Paxful, including local currency bank transfers and some of the world’s most popular digital wallets. […] As one of the sole exchanges offering this service with Paxful’s integration to our users, we are looking forward to seeing new possibilities arise by providing more fiat-to-crypto options to the mainstream.”

In addition to this, Paxful also accepts a variety of methods for purchasing Bitcoin, including bank transfer, credit card, SEPA transfer (from Europe), M-Pesa transfer (from parts of Africa), Paypal, and a number of gift and payment card options. Currently, there are 354 ways to purchase Bitcoin on the Paxful platform, including cryptocurrency options. Schaback believes this helps in fulfilling the partnership’s aim to reach and aid an estimated 2 billion unbanked people worldwide. He said:

“Unlike other payment gateways, Paxful supports more than 300 payment methods including local currency bank transfers, gift cards, and online wallets. This gives an opportunity for the unbanked and underbanked to be part of a new ecosystem.”

This partnership could be attributed to the previous success achieved in Africa. The company had reported that it had seen a 2800% increase in trades in South Africa.

Besides this, Paxful was also the company behind launching 20 new crypto ATMs in Colombia, in partnership with blockchain firm CoinLogiq. This was achieved by integrating the Paxful kiosk feature with CoinLogiq hardware, enabling users to purchase BTC using cash, credit, and online debit transfers. Users would also be able to send and receive money using cryptocurrency via the ATMs.

Fiat-crypto conversion has been arguably the most difficult hurdle for crypto adoption. By reducing these barriers, Paxful and Binance have set their sights on exposing the general population to a new way to look at money, based on blockchain technology and cryptography.

Anna Larsen
Anna Larsen has been a Crypto enthusiast since 2016. Fascinated by the technology and its usecases she decided to pursue a career in content creation related to this space. The journey has been exciting ever since.

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