PayPal will now allow US merchants to accept over 100 different cryptocurrencies as payment.
PayPal is rolling out a groundbreaking new feature that enables U.S. merchants to accept payments in more than 100 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), USDT, USDC, XRP, BNB, and Solana. Branded as “Pay with Crypto,” this initiative connects directly to major wallets like Coinbase, MetaMask, Binance, Kraken, OKX, Phantom, and Exodus to make crypto checkout seamless for shoppers.
Once a customer pays with crypto, the funds are instantly converted into U.S. dollars or PayPal’s own stablecoin, PYUSD, which merchants can hold directly in their PayPal accounts. Remarkably, PYUSD balances yield an annual 4% interest when held through PayPal—providing additional merchant revenue streams.
Key advantages for merchants
- Lower fees: A promotional 0.99% transaction rate applies through July 31, 2026, after which fees rise to 1.5%—still notably lower than typical international card processing rates (often 1.5–3.5%).
- Near-instant settlement: Funds become available almost immediately, improving cash flow.
- Currency risk mitigation: Payments are converted at point-of-sale, eliminating exposure to crypto volatility.
This rollout builds on PayPal’s earlier launch of PYUSD in August 2023. PayPal has since formed partnerships—most recently with Coinbase—to waive redemption fees and promote PYUSD adoption for DeFi and business apps.
Strategic context
The new feature marks a major step in PayPal’s broader effort to reshape global commerce by bridging fiat payments, digital wallets, and stablecoins. It positions PayPal alongside rivals like Stripe and Coinbase, all racing to enable cost-effective, crypto-native payment rails for businesses .
Initially limited to U.S. merchants excluding New York State, Pay with Crypto will expand availability in the coming weeks .
With Pay with Crypto, PayPal is ushering in a new era where cryptocurrencies become a practical payment method for everyday businesses—offering speed, cost-efficiency, and yield on stablecoin balances. This bold move highlights stablecoins (especially PYUSD) as a central component of a future cross-border payment ecosystem.
