Bitcoin News Today: PayPal's Crypto Payment Tool Cuts Costs 90% for U.S. Merchants Offers 0.99% Fee for 100+ Coins

PayPal Holdings Inc. has introduced a new crypto payment solution for U.S. merchants, enabling them to accept over 100 cryptocurrencies through its "Pay with Crypto" tool. Launched in July 2025, the feature allows businesses to process digital asset transactions with near-instant settlement, competitive fees, and integration with major wallets such as MetaMask and Binance. Supported tokens include Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Tether (USDT), USD Coin (USDC), and XRP, among others, with over 100 additional cryptocurrencies available for selection. Payments are automatically converted into PayPal’s stablecoin, PYUSD, or fiat currency at checkout, shielding merchants from price volatility [1][2].

The platform charges a 0.99% transaction fee for the first year, which will rise to 1.5% annually thereafter. This rate is lower than the average credit card fees of 1.57% paid by U.S. merchants in 2024, according to the Nilson Report [5]. The tool also reduces cross-border fees by up to 90% compared to traditional methods, potentially enhancing profitability for small and medium-sized businesses. Transactions are facilitated through centralized or decentralized exchanges before conversion to PYUSD. PayPal’s CEO, Alex Chriss, highlighted the platform’s ability to bridge international transactions, such as a Guatemalan customer purchasing from an Oklahoma-based merchant [5].

The move builds on PayPal’s early adoption of crypto, including its 2023 launch of PYUSD. The company’s strategy aligns with recent U.S. stablecoin-friendly legislation, which provides a regulated pathway for expanding crypto services. Analysts view the initiative as a bid to strengthen PayPal’s position in digital payments, leveraging its existing user base and infrastructure to streamline crypto adoption. The tool’s accessibility—requiring no technical expertise from merchants—further lowers barriers to entry for small businesses [1][2].

PayPal’s expansion into crypto payments coincides with broader industry efforts to simplify global transactions. Rivals like Stripe and Coinbase have also introduced stablecoin solutions, with Stripe’s USD Coin option gaining traction in 70 countries within days of its October 2024 launch. Coinbase, meanwhile, has long offered crypto merchant tools through its Commerce platform and recently introduced the x402 protocol to automate stablecoin transfers. These developments reflect growing demand for faster, lower-cost cross-border payment systems among businesses in sectors like e-commerce, travel, and real estate [3][6].

PYUSD’s market capitalization has surged by nearly 80% since January 1, reaching $894 million from $497 million, according to CoinGecko. The stablecoin’s growth underscores PayPal’s strategic focus on integrating digital assets into mainstream commerce. However, challenges persist, including potential regulatory scrutiny of PYUSD and concerns about the inclusion of volatile or meme-based tokens like TRUMP and Fartcoin. While these assets expand payment flexibility, they also raise questions about market legitimacy and price stability [4].

By emphasizing low costs, speed, and interoperability with existing crypto ecosystems, PayPal aims to drive adoption among merchants hesitant to embrace blockchain-based transactions. The company’s ability to balance innovation with compliance will likely determine the long-term success of this initiative. As the crypto landscape evolves, PayPal’s role in bridging traditional and digital finance remains pivotal, particularly for businesses seeking to diversify payment options amid rising crypto interest [1][2][5].

Source:

[1] [PayPal Launches Crypto Checkout Tool, Adds Support for ...](https://cointelegraph.com/news/paypal-crypto-checkout-tool-support-100-tokens)

[2] [PayPal to let U.S. businesses accept payment in more than ...](https://fortune.com/crypto/2025/07/28/paypal-100-cryptocurrencies-accept-merchants-bitcoin-ethereum/)

[3] [BREAKING – PayPal Unleashes Crypto Carnival](https://www.tradingview.com/news/newsbtc:e0591f35b094b:0-breaking-paypal-unleashes-crypto-carnival-100-coins-now-accepted-by-us-merchants/)

[4] [PayPal's Pay with Crypto: Supports 100 Coins, MetaMask, ...](https://cryptonews.com/news/paypals-pay-with-crypto-supports-100-cryptos-metamask-binance-and-more/)

[5] [PayPal opens doors for U.S. merchants to accept 100 new ...](https://www.thestreet.com/crypto/innovation/paypal-opens-doors-for-u-s-merchants-to-accept-100-new-assets)

[6] [PayPal's Pay with Crypto: A Game-Changer in Global ...](https://www.ainvest.com/news/paypal-pay-crypto-game-changer-global-digital-commerce-2507/)