The US Merchants’ world is revolutionized with PayPal’s crypto payment announcement. On July 28, PayPal announced its new feature called “Pay with Crypto” for businesses to make international transactions more accessible and profitable. The new service will allow businesses to make payments through more than 100 cryptocurrencies, as well as crypto wallets like Coinbase and MetaMask.
PayPal will now allow smaller US merchants to accept payments through crypto, enhancing the value of cryptocurrencies. By now, every registered US business using PayPal must have received the option of “Pay with Crypto,” allowing them to accept payments through Bitcoin, Ethereum, and Trump’s memecoin.
Paypal’s Crypto Payment – Revolutionizing the Crypto Industry
PayPal believes this new service will simplify international commerce, increasing merchants’ profit margins, leading to much lower transaction fees than international credit cards. Millions of merchants around the world use PayPal for business transactions. Alex Chriss, President and CEO of PayPal, posted on X, “Building on our 25+ years of payment, we let users link their wallet, pay with any token, convert it instantly to PYUSD, and deliver USD to a merchant in seconds. The result? Merchants pay less in fees and can instantly use funds.”
Among Fortune 500 companies, PayPal has been one of the early movers in crypto. Back in 2020, it allowed U.S. users to buy, sell, and hold popular cryptocurrencies like Bitcoin and Ethereum. Later, it extended those features to Venmo as well. However, during the “crypto winter” of 2022, when the market cooled off, PayPal pulled back on talking publicly about its crypto plans.
How Does PayPal Accept Crypto Payments?
Once the shopper makes payment, PayPal will convert the crypto into stablecoin or fiat. Additionally, the company has its stablecoin called PYUSD, which is backed by US dollars. PayPal will offer merchants a special promo rate of 0.99% on crypto transactions for the first year, then raise it to 1.5%, according to executive VP Frank Keller in an interview with Fortune. That’s still lower than the average 1.57% fee U.S. businesses paid to credit card companies in 2024, based on data from the Nilson Report.
Merchants now have access to real-time settlement in USD using PYUSD, helping mitigate crypto’s price volatility. As PayPal accepts crypto from major wallets, customers can confidently use Pay with Crypto features without friction. This flexibility is ideal for international merchants looking to reduce cross-border fees and exchange delays, making PayPal crypto payment a more viable option than ever before.
Benefits of PayPal Crypto Payment for Small Businesses
With PayPal now enabling merchants to accept digital currencies, small and mid-sized businesses stand to benefit the most. Traditionally, cross-border payments involve high fees, long settlement times, and compliance issues. Now, by using PayPal crypto payment, smaller merchants can process international transactions faster and more affordably.
The integration with wallets like MetaMask and Coinbase streamlines customer experiences, removing extra conversion steps. Businesses can now reach a much broader customer base as PayPal accepts crypto from over 100 tokens, removing restrictions tied to regional payment options. This move helps bridge the gap between traditional e-commerce and the decentralized financial ecosystem.
The Future Outlook for PayPal Crypto Expansion
Industry experts believe this latest update marks just the beginning of PayPal’s crypto expansion. The move to PayPal accepting 100 crypto isn’t just a temporary trend; it reflects a longer-term shift in how value is exchanged online. As digital currencies gain more regulatory clarity and user trust, more merchants are likely to opt in. PayPal’s ability to convert tokens instantly into PYUSD and deliver USD to the merchant’s account in seconds is a game-changer.
