Bitcoin News Today: PayPal Cuts Crypto Transaction Fees 90% to 0.99% Enables 100+ Cryptocurrencies for U.S. Merchants

PayPal has launched a new service allowing U.S. merchants to accept payments in over 100 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and stablecoins like USDT and USDC. The initiative, dubbed “Pay with Crypto,” converts incoming cryptocurrencies into PayPal USD (PYUSD), a stablecoin managed by Paxos and backed by U.S. dollar equivalents. This move aims to reduce transaction costs and simplify global commerce by bridging traditional finance with the crypto ecosystem [1].

The service enables merchants to receive crypto payments without bearing the volatility risk, as the tokens are automatically converted into PYUSD or U.S. dollars via PayPal’s infrastructure. Merchants can earn 4% annualized interest on PYUSD balances held within their PayPal accounts, creating an incentive to adopt the platform [2]. The process also supports instant settlement, addressing liquidity challenges for businesses unaccustomed to handling digital assets.

PayPal’s fee structure for the first year is 0.99% for crypto transactions, a significant reduction compared to traditional international payment processing rates, which typically exceed 4%. The company highlighted that this cost-cutting measure could benefit small and medium-sized enterprises, particularly those engaged in cross-border trade where high fees have historically been a barrier [4]. The service is initially available to U.S. merchants and integrates with major crypto wallets, including Coinbase, MetaMask, and Binance [3].

The initiative marks a strategic expansion for PayPal, which first entered the crypto space in 2020 by enabling users to buy and hold major tokens. In 2023, the company launched PYUSD, now the 12th-largest stablecoin with a market capitalization of approximately $900 million. PYUSD’s role in this service is central to PayPal’s vision of streamlining global commerce, as it allows real-time conversion of crypto assets into stablecoin or fiat without exposing merchants to price fluctuations [6].

Notably, the platform supports some of the more niche tokens, including memecoins like TRUMP and FARTCOIN, though PayPal will sell these on centralized or decentralized exchanges before converting the proceeds into U.S. dollars for merchants. CEO Alex Chriss emphasized the service’s potential to empower small businesses, stating, “We’re removing barriers and helping every business of every size achieve their goals” [1].

PayPal’s broader strategy aligns with its recent launch of PayPal World, a unified platform linking five global digital wallets. By reducing technical and financial barriers, the company aims to attract both crypto-native users and traditional merchants, leveraging its vast user base to drive adoption. Analysts suggest that PYUSD’s integration into PayPal’s ecosystem could position it as a key player in the stablecoin market, particularly as the platform offers yield generation on idle balances [7].

The service is set to roll out to U.S. merchants in the coming weeks, with potential global expansion pending regulatory developments. This move underscores PayPal’s commitment to capitalizing on the $3+ trillion crypto market, which covers 90% of the industry’s total value. By simplifying access to crypto payments, PayPal aims to accelerate mainstream adoption while addressing liquidity and operational challenges for merchants [8].

Source: [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 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] [PayPal to Enable Businesses to Accept Bitcoin, Ethereum](https://decrypt.co/332074/paypal-enable-retailers-accept-bitcoin-other-cryptocurrencies) [4] [PayPal’s Pay with Crypto: A Game-Changer for Merchant](https://www.ainvest.com/news/paypal-pay-crypto-game-changer-merchant-margins-global-commerce-2507/) [6] [PayPal USD (PYUSD) Price Today, News & Live Chart](https://www.forbes.com/digital-assets/assets/paypal-usd-pyusd/) [7] [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/) [8] [PayPal Launches Pay with Crypto Service for US Merchants](https://www.streetinsider.com/Corporate+News/PayPal+launches+Pay+with+Crypto+service+for+US+merchants/25103715.html)