PayPal Introduces "Pay with Crypto" for US Merchants, Allowing Over 100 Digital Currencies

PayPal has launched a new service, "Pay with Crypto", allowing U.S. merchants to accept over 100 cryptocurrencies. The service integrates with major wallets like Coinbase and MetaMask and converts transactions into U.S. dollars or PayPal's stablecoin, PYUSD, to protect merchants from price volatility. PayPal is offering a promotional transaction fee of 0.99% and a 4% annualized yield for merchants who retain their funds in PYUSD. The move aims to bring digital assets into mainstream commerce and position PayPal as a leader in the Web3 and digital asset economy.

PayPal has recently launched its "Pay with Crypto" service, a groundbreaking initiative that allows U.S. merchants to accept payments in over 100 cryptocurrencies. This new feature integrates seamlessly with major wallets like Coinbase and MetaMask, enabling instant conversion of cryptocurrencies into U.S. dollars or PayPal's stablecoin, PYUSD. The service aims to mitigate the volatility of cryptocurrencies by stabilizing transaction values, thereby providing a more secure and predictable payment experience for merchants.

The service introduces a promotional transaction fee of 0.99%, significantly lower than conventional credit card processing costs. Additionally, merchants who retain their funds in PYUSD are offered a 4% annualized yield, further enhancing their profit margins. This innovative solution positions PayPal as a key player in bridging traditional e-commerce with decentralized finance (DeFi), offering a streamlined and cost-effective cross-border payment solution.

PayPal's CEO, Alex Chriss, emphasized the strategic vision behind the initiative: "Building on our 25+ years in payments, we let users link their wallet, pay with any token, convert it instantly to PYUSD, and deliver USD to merchants in seconds. The result? Merchants pay less in fees and can instantly use funds" [2].

The inclusion of over 100 cryptocurrencies, including major tokens like Bitcoin (BTC), Ethereum (ETH), and stablecoins, caters to a wide spectrum of crypto users. This move aligns with PayPal's broader strategy to leverage blockchain technology for global commerce. However, the service's support for niche projects raises questions about regulatory scrutiny, particularly for tokens lacking clear utility. PayPal's use of PYUSD for instant conversion addresses these concerns by stabilizing transaction values and reducing exposure to price fluctuations [1].

The launch of "Pay with Crypto" is expected to drive increased market volume for major coins like BTC and ETH, as historical trends show PayPal's crypto announcements typically correlate with heightened trading activity [2].

References:
[1] https://newsroom.paypal-corp.com/2025-07-28-PayPal-Drives-Crypto-Payments-into-the-Mainstream,-Reducing-Costs-and-Expanding-Global-Commerce
[2] https://www.ainvest.com/news/bitcoin-news-today-paypal-unveils-100-crypto-payment-option-cuts-transaction-fees-0-99-cross-border-costs-90-2507/