Magic, a leading wallet-as-a-service (WaaS) provider, has announced a strategic funding round of $52 million, led by PayPal Ventures. Other participants in the funding round include Cherubic, Synchrony, KX, Northzone, and Volt Capital, bringing the total raised by Magic to over $80 million.
Magic aims to drive web3 mass adoption by serving as the go-to WaaS provider for companies seeking secure and user-friendly ways to transition their customers to web3. The platform offers an enterprise-grade, low-effort solution for web3 migration, enabling companies to explore new avenues such as customer loyalty programs, digital collectibles, employee recognition, ticketing, memberships, and more. Magic’s customer base includes trusted brands in retail, music, fashion, and gaming, including Mattel, Macy’s, Xsolla, Immutable, and others.
Since its launch in 2018, Magic has observed a growing interest in web3 use cases among large enterprises across various industries. Global brands are recognizing the potential of blockchain beyond cryptocurrencies and leveraging it to engage with customers and monetize their experiences in innovative ways. Magic collaborates closely with Fortune 500 companies to bring web3 use cases to everyday users. The company’s vision is to enable authentic digital ownership for everyone and build the necessary infrastructure to onboard the next billion users to web3.
With the new funding, Magic plans to expand its functionality, support growing use cases, and provide more value to its customers. The company also aims to strengthen its integration within the European Union (EU) and Asia-Pacific (APAC) regions.
Alan Du, a partner at PayPal Ventures, highlighted the importance of web3 mass adoption and praised Magic for facilitating this with its safe and simple solution. Magic’s wallet creation service allows companies to reach millions of users on their apps and onboard new web3 users. PayPal Ventures is proud to invest in Magic and believes the company will contribute to the increasing number of web3 use cases among global brands.
Magic offers secure, seamless, and near-instant non-custodial wallet creation. By implementing Magic’s software development kit (SDK) into their code base, vendors can enable users to create wallets instantly using their existing email, social media, SMS, or federated logins. Magic’s patented technology ensures scalability and provides users with complete control over their assets. The platform’s enterprise-ready features and compliance with SOC2 Type 2, CCPA, GDPR, HIPAA, and ISO set it apart from other WaaS providers. Unlike other providers that require mobile login, Magic is accessible from any user device, including phones, desktops, and tablets, making it widely available to users regardless of their preferred web access method.
To date, Magic has generated over 20 million unique wallets, and its SDK is used by more than 130,000 developers. The platform’s industry-leading scalability enables the creation of over 2,000 wallets per second (wps), surpassing the speed of the fastest alternatives that typically achieve 80-100 wps.
