PayPal Launches “Pay with Crypto” to Cut Fees and Open Global Markets for U.S. Merchants

PayPal is reimagining global commerce with the launch of its groundbreaking “Pay with Crypto” feature. Announced on July 29, 2025, the payment giant now enables U.S.-based merchants to accept over 100 different cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and stablecoins like USDT and PYUSD.

The service integrates with major wallets such as Coinbase, MetaMask, Binance, and Kraken—bringing seamless blockchain-based payments to mainstream business operations.

Unlike traditional credit card processors that charge up to 4% on international transactions, PayPal’s new service offers a highly competitive 0.99% transaction fee.

Crypto payments are automatically converted to U.S. dollars or PayPal’s stablecoin PYUSD at the point of sale, ensuring fast settlement with minimal volatility. Merchants also benefit from the option to earn 4% APY on PYUSD balances held within their PayPal accounts.

Cross-Border Payments Made Simple, Fast, and Affordable

PayPal CEO Alex Chriss emphasized the real-world impact of the feature, stating, “A business in Oklahoma can now instantly accept a crypto payment from a customer in Guatemala—without facing costly delays or complex currency conversions.”

The system eliminates traditional hurdles in cross-border payments, such as long settlement times, banking intermediaries, and high foreign exchange fees. By leveraging blockchain rails and stablecoins, merchants can tap into the $3 trillion digital asset economy and access over 650 million active crypto users worldwide.

The company’s latest rollout builds on its broader crypto roadmap, including the expansion of its stablecoin PYUSD to Arbitrum and the launch of “PayPal World,” a cross-wallet initiative to unify major global payment platforms.

A Strategic Push Amid Rising Stablecoin Demand

PayPal’s entry into crypto checkout services coincides with the growing adoption of stablecoins across the financial sector. While competitors like Stripe and Coinbase are developing similar tools, PayPal is setting itself apart with instant settlement, built-in rewards, and robust wallet compatibility.

However, regulatory limitations remain. The feature is currently unavailable in New York due to pending state approvals, and digital assets still lack federal insurance protections. Despite these hurdles, PayPal’s strategy reflects a strong commitment to making crypto payments both practical and profitable for everyday commerce.

As crypto continues to evolve from speculative asset to transactional tool, PayPal’s “Pay with Crypto” positions the company as a leader in inclusive, low-cost, global payment innovation.