MoonPay's Payment Gateway Model Under Fire as Users Seek Alternatives
MoonPay is a payment gateway that allows users to buy cryptocurrencies with their credit cards. The company was founded in Miami in 2019 and has since become integrated into several popular wallets, including MetaMask and Trust Wallet. Despite its widespread adoption, MoonPay's business model has raised some concerns among users.
One of the main issues with MoonPay is that it operates as a single-use payment gateway, which means that users do not have access to their own account or trading dashboard. Additionally, MoonPay's fees can be high, with up to 4.5% charged on card transactions, plus additional fees levied by partner wallets.
Another issue is that MoonPay has been subject to several regulatory actions and sanctions in the past. For example, the Texas Banking Commissioner issued a consent order against MoonPay USA LLC in 2023 for engaging in unlicensed money transmission, resulting in a $30,516.30 penalty.