Bitcoin News Today: PayPal Cuts International Crypto Fees 90% with 0.99% Flat Rate Until 2026

PayPal Inc. (NASDAQ:PYPL) has introduced a groundbreaking crypto payment service, “Pay with Crypto,” which drastically reduces international transaction fees by up to 90% compared to traditional credit card processing. The initiative, set to launch for U.S. merchants in the coming weeks, offers a flat 0.99% transaction rate for crypto-based payments until July 31, 2026 [1][2]. This move aims to democratize access to the cryptocurrency market, connecting small businesses with over 650 million global crypto users through integrations with major wallets like Coinbase and MetaMask [1][3]. Merchants also gain the ability to earn a 4% annualized yield on PYUSD holdings within the platform, merging payment processing with treasury management [2].

The service operates by instantaneously converting cryptocurrencies into fiat or PYUSD, its stablecoin pegged to the U.S. dollar. Supported assets include over 100 cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), enabling seamless cross-border transactions [1][2]. By eliminating volatility risks through stablecoin conversions, PayPal positions the platform as a reliable alternative to conventional payment systems. Alex Chriss, PayPal’s President and CEO, highlighted the initiative’s potential to remove barriers in global commerce, citing an example where a Guatemalan shopper could purchase goods from an Oklahoma-based merchant with lower fees and faster settlements [1].

This launch aligns with PayPal’s broader strategy to expand its digital infrastructure. The company recently introduced PayPal World, a platform integrating five major digital wallets—PayPal, Venmo, Tenpay Global, NPCI International (UPI), and Mercado Pago—to streamline cross-border transactions [2]. Analysts suggest the service could significantly boost profit margins for international businesses, which have historically been deterred by high processing fees [1]. By combining reduced costs, instant access to funds, and yield-generating features, PayPal challenges traditional payment processors and emerging fintech platforms [2].

The initiative reflects PayPal’s confidence in the growing crypto economy. With the 0.99% rate valid until 2026, the company aims to accelerate mainstream adoption of crypto payments, addressing technical complexities that have limited their use [2]. The focus on PYUSD underscores PayPal’s regulatory compliance strategy, balancing innovation with stability. However, long-term success will depend on maintaining competitive pricing post-promotion and navigating evolving regulatory frameworks [1][2].

The move signals PayPal’s ambition to redefine global commerce. By leveraging its existing user base and infrastructure, the company seeks to capture a significant share of the $3+ trillion cryptocurrency market [1][3]. As more merchants adopt the platform, the ripple effects could reshape international trade, reducing reliance on legacy systems and fostering financial inclusivity. Yet, the initiative’s sustainability will hinge on user engagement, regulatory developments, and PayPal’s ability to retain its fee advantage in an increasingly competitive landscape [1][2].

Source:

[1] [PayPal's new crypto payment service slashes international transaction fees by 90%] (https://cryptoslate.com/paypals-new-crypto-payment-service-slashes-international-transaction-fees-by-90/)

[2] [PayPal Slashes Crypto Payment Fees 90% with New ...] (https://www.stocktitan.net/news/PYPL/pay-pal-drives-crypto-payments-into-the-mainstream-reducing-costs-lc9bb46ffmqh.html)

[3] [Bitcoin News Today: PayPal Cuts Crypto Transaction Fees ...] (https://www.ainvest.com/news/bitcoin-news-today-paypal-cuts-crypto-transaction-fees-90-0-99-enables-100-cryptocurrencies-merchants-2507/)