PayPal has announced a major expansion in its cryptocurrency payment services by allowing U.S. merchants to accept payments in more than 100 different cryptocurrencies, including popular coins like Bitcoin, Ethereum, Tether (USDT), and USD Coin (USDC). This new service, named “Pay with Crypto,” is set to launch in the coming weeks and aims to simplify crypto transactions for businesses and consumers alike.
With this feature, merchants will be able to receive payments in various digital currencies through wallets such as Coinbase, MetaMask, Binance, OKX, Phantom, and Exodus. When customers pay in crypto, the funds are automatically converted into U.S. dollars or PayPal’s own stablecoin, PYUSD, which maintains parity with the U.S. dollar. This instantaneous conversion protects merchants from the volatility of cryptocurrency prices and ensures they receive a stable value in their accounts.
PayPal is offering a promotional transaction fee rate of 0.99% through July 31, 2026, which is significantly lower than typical credit card fees averaging between 1.5% to 3.5%. After this period, fees will increase modestly to 1.5%, which still represents savings for merchants, especially on international sales. This new payment option notably reduces the costs and delays often associated with cross-border transactions, which can run up to 10% in fees and take days to process.
According to PayPal’s president and CEO, Alex Chriss, the platform will enhance merchants’ profit margins and provide near-instant access to funds, fostering easier access to a global marketplace. For example, a shopper in Guatemala can purchase goods from a U.S. vendor, paying in cryptocurrency while the merchant receives the payment in stable US dollars quickly and with lower fees.
Additionally, merchants holding funds in PYUSD within PayPal accounts can earn about 4% annual rewards, adding further incentive to utilize PayPal’s stablecoin service.
This initiative represents PayPal’s commitment to mainstreaming cryptocurrency use in commerce, particularly supporting small businesses by broadening their customer base to include the rapidly growing crypto user community of over 650 million worldwide. PayPal’s move also strengthens their investment in integrating blockchain and digital asset technology into their payment infrastructure long-term.
In summary, PayPal’s “Pay with Crypto” opens up a $3 trillion crypto market to merchants, offering convenience, reduced transaction costs, instant settlements, and stable currency receipts, marking a significant step in bringing cryptocurrencies into everyday business transactions.