PayPal Launches Revolutionary “Pay with Crypto” Feature for 100+ Digital Currencies
PayPal has officially launched its groundbreaking “Pay with Crypto” feature, enabling U.S. merchants to accept payments in over 100 cryptocurrencies including Bitcoin, Ethereum, and major stablecoins. This game-changing development transforms how businesses handle digital payments while dramatically reducing transaction costs by up to 90% compared to traditional international credit card processing.
The new payment solution addresses a critical pain point for merchants: expensive cross-border transactions that can eat into profit margins. PayPal will charge merchants a promotional fee of 0.99% on transactions for the first year and then up the charge to 1.5%, significantly undercutting the 1.57% average rate that U.S. businesses paid to credit card companies in 2024.
How PayPal’s Crypto Payment System Works
The Pay with Crypto feature simplifies cryptocurrency transactions for businesses through seamless automation. Transactions paid with cryptocurrencies will be automatically converted into PayPal’s stablecoin PYUSD or fiat currency at checkout, allowing merchants to receive crypto payments without dealing with price volatility.
This innovative approach removes the complexity and risk traditionally associated with cryptocurrency payments. Merchants receive stable currency deposits while customers can pay using their preferred digital assets from popular wallets.
Supported Cryptocurrencies and Wallets
Pay with Crypto offers the ability to pay with 100 cryptocurrencies including BTC, ETH, USDT, XRP, BNB, Solana, USDC and many others and connect wallets including Coinbase, OKX, Binance, Kraken, Phantom, MetaMask, and Exodus with more to come.
The comprehensive wallet integration ensures customers can use their existing cryptocurrency holdings regardless of their preferred storage solution. This broad compatibility positions PayPal as a universal bridge between the crypto ecosystem and traditional e-commerce.
Transaction Fees and Cost Savings
The financial benefits for merchants are substantial. With a transaction rate of 0.99%, Pay with Crypto decreases the cost of transactions by up to 90% when compared to international credit card processing. This dramatic cost reduction can significantly impact profit margins, especially for businesses handling international transactions.
After the promotional period ends on July 31, 2026, the standard rate increases to 1.5%, which remains competitive with traditional payment methods. For context, credit card processing fees typically range from 1.5% to 3.5%, with international transactions often carrying even higher costs.
Market Impact and Industry Context
PayPal’s crypto payment launch arrives at a pivotal moment in digital payment evolution. The e-commerce sector experienced a 45% growth in cryptocurrency payments, with giants like Shopify and Overstock leading adoption. This trend reflects growing consumer demand for cryptocurrency payment options across various industries.
Growing Cryptocurrency Adoption
The timing couldn’t be better for widespread crypto payment adoption. In 2025, approximately 28% of American adults, or about 65 million people, own cryptocurrencies. This represents a significant market of potential customers who prefer using digital assets for purchases.
Additionally, about 37% of U.S. and UK respondents cite AI and digital payments as key forces behind growing crypto adoption. Another 34% use crypto for payments — more than for staking or farming — showing that utility is rising over passive DeFi activity.
Global Payment Trends
The broader payment landscape is shifting toward digital solutions. By 2028, global payments revenue is expected to surpass USD 3 trillion, with Asia-Pacific leading, contributing nearly 50%. Cryptocurrency payments represent a growing segment of this expansion, with global crypto transaction volume projected to hit $10.8 trillion in 2025, fueled by rising retail and institutional adoption.
Benefits for Merchants and Consumers
Merchant Advantages
PayPal’s crypto payment solution offers several compelling benefits for businesses:
Reduced Transaction Costs: The 90% reduction in processing fees compared to international credit cards creates immediate cost savings that flow directly to the bottom line.
Faster Settlement: Pay with Crypto powers near-instant settlement, seamless international transactions and provides transaction fee savings of up to 90%. This improved cash flow can be crucial for small and medium-sized businesses.
Global Reach: The system eliminates traditional barriers to international commerce, allowing businesses to serve customers worldwide without worrying about currency conversion complexities.
Risk Mitigation: Automatic conversion to stable currencies protects merchants from cryptocurrency volatility while still providing access to crypto-holding customers.
Consumer Benefits
For cryptocurrency holders, PayPal’s system removes common payment friction points:
Universal Acceptance: Customers can use their crypto holdings at any merchant accepting PayPal payments, dramatically expanding usability.
Wallet Flexibility: Support for major wallets means users don’t need to change their preferred cryptocurrency storage methods.
Simplified Transactions: The seamless conversion process eliminates the need for manual currency exchanges or complex payment procedures.
Implementation and Availability
Any U.S. business using PayPal’s online payments processing platform can opt in to accept cryptocurrency payments. The rollout is currently limited to U.S. merchants, with international expansion planned for the future.
Future Expansion Plans
PayPal plans to expand the ability for merchants to accept crypto to larger enterprise customers in the U.S. and globally, but a spokesperson declined to provide a timeline. This phased approach allows PayPal to refine the system while building momentum in the market.
The company’s strategic approach reflects lessons learned from previous crypto initiatives and positions them for sustainable growth in the digital payments space.
Competitive Landscape and Market Position
PayPal’s entry into comprehensive crypto payments puts them in direct competition with specialized providers while leveraging their massive merchant network. Competitors, such as Stripe, continue to roll out new features for cross-border crypto payments. In October 2024, Stripe launched a stablecoin payment option for USD Coin that saw adoption from users in 70 countries on its first day.
However, PayPal’s advantage lies in its established merchant relationships and the integration with existing payment infrastructure. PayPal is used by tens of millions of merchants around the world, providing immediate distribution for the new crypto payment capabilities.
Regulatory Environment
The launch benefits from improved regulatory clarity in the cryptocurrency space. President Donald Trump signed the GENIUS Act into law, further embedding the digital currency in the mainstream. The first major crypto legislation ever passed by Congress, the GENIUS Act establishes a regulatory framework for the $250 billion stablecoin market.
This regulatory foundation provides the stability and legal clarity necessary for widespread business adoption of cryptocurrency payments.
Technical Infrastructure and Security
PayPal’s implementation leverages their existing robust payment infrastructure while adding cryptocurrency-specific capabilities. The multi-step conversion process happens seamlessly in the background, ensuring merchants receive stable currency deposits while maintaining transaction security standards.
The integration with established cryptocurrency wallets and exchanges provides multiple layers of security and redundancy, reducing the risk of payment failures or security breaches that have historically concerned merchants about crypto payments.
Business Impact and ROI
For merchants evaluating crypto payment adoption, the financial case is compelling. The combination of reduced transaction fees, faster settlement times, and access to a growing customer base of cryptocurrency holders creates multiple value streams.
Early adopters may gain competitive advantages by attracting crypto-holding customers who prefer businesses that accept digital currencies. Cities like Cannes aim for 90% crypto adoption among merchants, as retail and food payments dominate usage.
Looking Forward: The Future of Crypto Payments
PayPal’s comprehensive crypto payment solution represents a significant step toward mainstream cryptocurrency adoption in commerce. Cryptocurrency payment adoption is set to surge 82.1% in two years, driven by crypto-friendly regulatory changes and payment provider expansion.
The combination of major payment processor adoption, regulatory clarity, and growing consumer cryptocurrency ownership creates favorable conditions for widespread crypto payment integration. Businesses that adopt these solutions early may position themselves advantageously as the payment landscape continues evolving.
As PayPal CEO Alex Chriss noted, “There’s a worldview where you can imagine that the world is moving on chain,” referring to the broader shift toward blockchain-based financial infrastructure.
Ready to transform your payment processing? Explore how PayPal’s Pay with Crypto feature can reduce your transaction costs while expanding your customer base. Contact your PayPal representative today to learn about implementation options for your business.
