These instructions worked for me:
- Select All and copy the image from the layer you want to use as a grayscale mask.
- Switch to the channels tab of the layers panel.
- Add a new channel. Paste your image data in that new channel.
- Click the button on the bottom of that panel labeled “Load channel as Selection” — you will get a marquee selection of the alpha channel.
- Switch back to the layers panel, click on the layer you wish to apply a mask to and click the button at the bottom of that panel “Add Layer Mask”.
And then save it as a PNG and you’re good to go. Note that step 5 is a bit confusing as there isn’t such a button, but if you hover at the bottom something similar is right there.