Leading payment platform PayPal is introducing a new “Pay With Crypto” feature that allows merchants to accept payments in more than 100 cryptocurrencies.
PayPal has unveiled a new “Pay With Crypto” feature that lets US merchants accept payments in more than 100 cryptocurrencies. The service was created in order to simplify cross-border transactions and increase the use of digital currencies in everyday business.
It is set to support top coins like Bitcoin and Ethereum as well as stablecoins such as USDT and USDC. Merchants can also receive payments using less popular, alternative tokens, with support expected to expand over time.
Initially available to US-based merchants, excluding New York, PayPal’s new service enables sellers to accept crypto without price volatility concerns. Once at the checkout stage, user payments will be instantly converted into fiat currency or PayPal’s stablecoin, PYUSD.
The new payment option will work with major crypto exchanges like Coinbase, OKX, Kraken and Binance. It will also support popular wallets such as MetaMask, Phantom and Exodus, broadening customer reach for sellers.
As part of its announcement, PayPal revealed that crypto payments through its platform will cost just 0.99% per transaction. This figure makes it around 90% cheaper than typical credit card fees, which often start at 1.75%.
PayPal’s plan to offer enhanced payment flexibility
The “Pay With Crypto” service forms a key part of PayPal’s broader strategy to encourage future stablecoin adoption. Its stablecoin PYUSD, launched in 2023, recently saw its market cap rise from $497 million to $894 million.
Through the new service, sellers will be able to hold their earnings in PYUSD on PayPal and earn an annual interest rate of 4%. This option gives businesses flexibility in managing their funds after each transaction.
In May 2024, PayPal launched PYUSD on the Solana blockchain to boost speed and scalability. The company has also partnered with MoonPay and Anchorage Digital to expand payment methods and build PYUSD reward systems.
Last week, the company collaborated with major digital wallets to streamline global payments through its new “PayPal World” platform. The project aims to support growth, reduce costs, and expand payment choices for both businesses and consumers.
PayPal boss hails new payment feature
Alex Chriss, president and CEO of PayPal, claimed the new feature simplifies the process for businesses trying to grow internationally. In a press release, he noted that high fees and complex systems have hindered expansion for small and medium enterprises.
He said: “Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations. Today, we’re removing these barriers and helping every business of every size achieve their goals.”
Chriss then gave the example of a buyer in Guatemala purchasing from a seller in Oklahoma. The PayPal system would enable this transaction to happen much more quickly and at a lower cost when using crypto.
This latest update from PayPal follows the passage of the GENIUS Act, which offers regulatory clarity for stablecoins. The legislation encourages fintech firms to develop crypto services with more legal certainty.
It also comes after efforts from rival firms Stripe and Coinbase, who have also recently introduced new crypto payment features. The company’s entry into the crypto payment sector indicates a growing interest in digital currencies for global commerce from users.
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