PayPal launches cryptocurrency payment feature for US merchants.

PayPal has introduced a feature that allows US merchants to accept over 100 cryptocurrencies as payment. The feature, called Pay with Crypto, enables users to make payments using various cryptocurrencies, including Bitcoin, Ethereum, and Tether. Payments made through this feature will be automatically converted into PayPal's stablecoin PYUSD or traditional fiat currency at the point of sale. Merchants will incur a transaction fee of 0.99%, significantly lower than standard credit card processing fees.

PayPal has recently unveiled a groundbreaking feature called Pay with Crypto, which allows U.S. merchants to accept payments in over 100 cryptocurrencies. This innovative solution, powered by PayPal, supports a diverse array of tokens, including major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and stablecoins, as well as niche projects such as Fartcoin [2].

The Pay with Crypto feature enables users to make payments using various cryptocurrencies, which are automatically converted into PayPal's stablecoin, PYUSD, or traditional fiat currency at the point of sale. This seamless integration not only simplifies the payment process for merchants but also reduces transaction fees significantly. Merchants will incur a transaction fee of 0.99%, which is substantially lower than standard credit card processing fees [1].

PayPal's CEO, Alex Chriss, emphasized the strategic vision behind this 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 [7]." This model mitigates the volatility of cryptocurrencies by converting digital assets into stable fiat currency, simplifying the reconciliation process for merchants.

The inclusion of over 100 cryptocurrencies caters to a wide spectrum of crypto users, from mainstream investors to enthusiasts of niche tokens. However, the integration of speculative 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 [10].

Analysts suggest that PayPal's move could catalyze broader industry adoption of crypto as a payment method. The platform's existing infrastructure—already enabling users to buy, hold, and sell digital assets—now extends to direct crypto acceptance, fostering a more seamless user experience. This expansion 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 [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/