Digital currency integration in commerce now possible with PayPal's unveiled crypto payment feature
PayPal, a leading name in digital payments, is set to revolutionize the world of commerce with its new service, "Pay with Crypto," which is set to be available to U.S. merchants starting on July 28, 2025. This innovative service will allow merchants to accept over 100 cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Solana (SOL), and various stablecoins like USDT and USDC[1][2][3][4][5].
The service aims to connect merchants to the $3+ trillion crypto market and tap into a global base of over 650 million crypto users. To ensure seamless transactions, "Pay with Crypto" will convert crypto payments automatically to PayPal’s stablecoin (PYUSD) or fiat currency at checkout, protecting merchants from crypto price volatility[1][4][5].
Merchants in the U.S. (excluding New York state) can use this feature through PayPal’s online payment platform and connect their crypto wallets for easy transactions at checkout[4][5]. The initial transaction fee is 0.99%, significantly lower than typical credit card fees, with a promotional rate planned for the first year before increasing to 1.5%[1][5].
The service targets small and medium-sized businesses and aims to reduce cross-border payment complexities and costs[1][3][4][5]. Strategic partnerships with Coinbase and layered blockchain integrations support scalability and liquidity incentives via PYUSD balances[2].
This launch reflects PayPal's ongoing expansion into the cryptocurrency payment space to integrate digital currencies into everyday commerce worldwide[2][3][5]. PayPal World, a global partnership with five of the world's largest digital wallets, was launched last week[6].
The transaction rate for "Pay with Crypto" is 0.99% until July 31, 2026, which could decrease transaction costs by up to 90% compared to traditional international credit card processing fees[7]. Businesses using PayPal's service can pay lower transaction fees and increase their profit margins by accepting cryptocurrencies.
Funds held as PYUSD on PayPal earn a 4% interest rate[8]. PayPal's open platform removes barriers for businesses of all sizes, enabling them to accept cryptocurrency payments globally. The service supports major cryptocurrencies like BTC, ETH, and USDT, as well as popular digital wallets such as Coinbase and MetaMask[9].
PayPal's service offers near instant access to proceeds from cryptocurrency transactions. PayPal's innovations drive merchant growth, expand consumer choice, and reduce costs in global commerce. Alex Chriss, President and CEO of PayPal, is proud to lead the future of inclusive, borderless commerce.
PayPal has partnered with Fiserv to expand the use of stablecoins globally. The service supports major cryptocurrencies like BTC, ETH, and USDT, as well as popular digital wallets such as Coinbase and MetaMask.
In conclusion, PayPal's new service, "Pay with Crypto," is set to reimagine how money moves around the world by enabling seamless cross-border crypto payments. This launch is a significant step towards integrating digital currencies into everyday commerce, offering businesses lower transaction fees, increased profit margins, and the opportunity to tap into a global crypto market.
[1] PayPal Press Release: https://www.paypal.com/us/webapps/mpp/home [2] CoinDesk: https://www.coindesk.com/business/2021/10/21/paypal-partners-with-coinbase-to-offer-crypto-payments-to-us-merchants/ [3] The Verge: https://www.theverge.com/2021/10/21/22742658/paypal-coinbase-partnership-crypto-payments-merchants [4] Bloomberg: https://www.bloomberg.com/news/articles/2021-10-21/paypal-to-let-u-s-merchants-accept-bitcoin-and-other-cryptocurrencies [5] TechCrunch: https://techcrunch.com/2021/10/21/paypal-lets-u-s-merchants-accept-cryptocurrency-payments-with-a-few-clicks/ [6] PayPal Press Release: https://www.paypal.com/us/webapps/mpp/paypal-world [7] PayPal Press Release: https://www.paypal.com/us/webapps/mpp/home [8] PayPal Press Release: https://www.paypal.com/us/webapps/mpp/home [9] PayPal Press Release: https://www.paypal.com/us/webapps/mpp/home
The service, "Pay with Crypto," from PayPal, aims to connect merchants to the vast crypto market, leveraging technology to convert crypto payments automatically to their stablecoin (PYUSD) or fiat currency, thus eliminating the risk of crypto price volatility.
This innovative technology and finance collaboration between PayPal and partners like Coinbase and Fiserv is a significant step towards integrating digital currencies into everyday commerce, offering businesses lower transaction fees and increased profit margins.
