Bitcoin News Today: PayPal Launches Pay with Crypto Service for U.S. Merchants with 0.99% Fee First Year and 4% PYUSD Rewards

PayPal has launched a new service called "Pay with Crypto," enabling U.S. merchants to accept payments in over 100 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and stablecoins like USDT and USDC. The initiative, effective July 28, 2025, allows businesses to integrate crypto payments via major platforms and crypto wallets such as Coinbase and MetaMask, reducing technical barriers to adoption. Merchants can also earn 4% annual rewards on PYUSD balances held within the platform, offering an additional revenue stream. The transaction fee structure is set at 0.99% for the first year, increasing to 1.5% thereafter, positioning it as a competitive alternative to traditional payment methods [1][2][3][4].

The move aligns with PayPal’s broader strategy to bridge traditional and digital financial ecosystems, particularly for cross-border commerce. By converting cryptocurrencies to stablecoins or fiat currencies, the platform aims to mitigate price volatility while enabling near-instant settlements. Small businesses, in particular, stand to benefit from the cost savings, with fees reduced by up to 90% compared to conventional international processing rates. This could enhance operational efficiency and expand access to a global network of 650 million crypto users [5][6].

PayPal’s CEO, Alex Chriss, highlighted the initiative as a response to the growing challenges businesses face in global expansion. The service eliminates complexities in international payment integration and reduces costs, enabling merchants to "achieve their goals" in a borderless commerce environment. The company’s focus on user-friendly interfaces and partnerships with existing crypto ecosystems differentiates it from competitors in the blockchain space [7][8].

Analysts suggest the service positions PayPal to capture a share of the $3+ trillion cryptocurrency market, targeting a demographic of crypto holders who may otherwise avoid spending digital assets. The integration with stablecoins and fiat conversion further incentivizes adoption by addressing volatility concerns. Additionally, the company’s collaboration with Fiserv to expand stablecoin payments enhances its market reach, potentially driving growth in crypto wallet activity and merchant inflows [9].

The launch follows PayPal’s recent consolidation of five major global digital wallets under its PayPal World initiative, underscoring its push to disrupt traditional cross-border payment infrastructure. By combining low-cost transactions, yield generation on idle balances, and seamless crypto-to-fiat conversion, the platform is evolving into a hybrid solution for both payment processing and treasury management. This approach could accelerate mainstream adoption of crypto payments, particularly in sectors reliant on cross-border trade [10].

While exact on-chain metrics remain undisclosed, historical trends indicate potential increases in merchant adoption and digital currency usage. The service’s initial focus on U.S. merchants, with plans for global expansion, reflects PayPal’s strategic alignment with the growing demand for decentralized finance (DeFi) solutions. By addressing technical and financial barriers, the company is fostering a self-sustaining ecosystem where businesses can leverage crypto without requiring in-house blockchain expertise [11].

Sources:

[1] [PayPal Drives Crypto Payments into the Mainstream](https://newsroom.paypal-corp.com/2025-07-28-PayPal-Drives-Crypto-Payments-into-the-Mainstream,-Reducing-Costs-and-Expanding-Global-Commerce)

[2] [PayPal says it will allow businesses to accept payments in ...](https://www.cbsnews.com/news/paypal-cryptocurrency-crypto-payment-businesses-bitcoin-ethereum/)

[3] [PayPal Set To Launch 'Pay With Crypto' For U.S. Merchants](https://www.nasdaq.com/articles/paypal-set-launch-pay-crypto-us-merchants)

[4] [PayPal (PYPL) Launches “Pay with Crypto” to Boost ...](https://www.tipranks.com/news/paypal-pypl-launches-pay-with-crypto-to-boost-merchant-options-ahead-of-q2-earnings)

[5] [PayPal Pay with Crypto Slashes Global Transaction Fees](https://ffnews.com/newsarticle/cryptocurrency/paypal-pay-with-crypto-launch/)

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

[7] [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)

[8] [PayPal Allows Businesses To Accept More Than 100 ...](https://www.barchart.com/story/news/33690526/paypal-allows-businesses-to-accept-more-than-100-cryptocurrencies-on-platform)

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

[10] [PayPal Expands Crypto Payments for Merchants](https://coinmarketcap.com/community/articles/6887cae0fb184a125f70cdc5/)

[11] [PayPal World initiative details](https://www.paypal-corp.com/global-solutions).