TL;DR
- PayPal introduces ‘Pay With Crypto’ to let small businesses accept over 100 cryptocurrencies, converting them into its PYUSD stablecoin for lower fees and faster access to funds.
- This expansion reflects PayPal’s growing integration of crypto since 2020.
- Initially, U.S. merchants will connect through popular wallets like Coinbase and MetaMask, with a competitive fee structure and an attractive yield for holding PYUSD within PayPal’s platform.
PayPal has announced a new payment feature designed to empower small and medium-sized businesses to accept digital currencies seamlessly. Dubbed ‘Pay With Crypto,’ the service converts crypto payments into PYUSD, PayPal’s stablecoin managed by Paxos, making digital transactions more practical for merchants who prefer predictable dollar-based settlements.
The fintech leader says this approach allows businesses to bypass high international card fees and unlock near-instant settlements. The first year will offer a promotional transaction fee of just 0.99%, increasing modestly to 1.5% later—still competitive compared to typical cross-border payment options.
Small Businesses Gain New Payment Flexibility
Merchants across the United States will soon be able to link wallets like Binance, Kraken, Phantom, Exodus, OKX, MetaMask, and Coinbase to their PayPal business accounts. Customers will be able to pay with popular cryptocurrencies, including not just Bitcoin and Ethereum but also trending memecoins like TRUMP and FARTCOIN. PayPal will handle the conversion process, selling tokens on centralized or decentralized exchanges as needed and delivering U.S. dollars directly to the merchant’s balance.
Alex Chriss, PayPal’s CEO, emphasized how this innovation levels the playing field for businesses that want to grow globally without the friction of high processing fees or complex setups. Merchants will even have the option to earn up to 4.5% on PYUSD balances held within PayPal’s ecosystem. This added incentive could encourage businesses to hold funds longer and use them for future transactions or reinvestments.
Stablecoin Integration Expands Fintech Innovation
Since venturing into crypto in 2020, PayPal has steadily broadened its digital asset footprint. Its PYUSD stablecoin, launched in 2023, has quickly grown to become one of the largest in circulation, with nearly $900 million in market value. While PYUSD does not carry FDIC or SIPC insurance, PayPal is betting on transparency and ease of use to build trust.
By opening its payments network to a wider range of digital assets, PayPal aims to put crypto to work for everyday commerce, helping merchants tap into new customer bases, explore alternative revenue streams, and stay competitive in a fast-evolving global market. This latest move signals that PayPal sees crypto as a lasting piece of the payments landscape rather than a passing trend.
