Bitcoin News Today: PayPal Enables U.S. Merchants to Accept 100+ Cryptocurrencies with 0.99% Fee 90% Lower Than International Processing Costs

PayPal has announced a significant expansion of its payment ecosystem, enabling U.S. merchants to accept cryptocurrency transactions for the first time. The feature, set to launch in the coming weeks, supports over 100 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Tether’s USDT, and Circle’s USDC. Merchants can integrate the service through popular wallets like Coinbase and MetaMask, providing access to a global network of over 650 million crypto users. The platform also offers instant conversion of cryptocurrencies to stablecoins or fiat currencies, streamlining settlement while reducing exposure to price volatility [1]. This development underscores PayPal’s commitment to bridging traditional finance and decentralized ecosystems, following the recent launch of its PayPal World platform, which consolidates five major global digital wallets [1].

The new service introduces a competitive 0.99% transaction fee for crypto payments, representing a 90% reduction compared to traditional international payment processing costs. This cost efficiency could significantly benefit small businesses and cross-border sellers, who often face high fees for digital transactions. Additionally, merchants can earn 4% annualized rewards on PYUSD stablecoin balances held within their PayPal accounts, creating a dual incentive to adopt the service [1]. By aligning with broader trends in digital commerce, PayPal aims to reduce transaction costs, accelerate global trade, and offer U.S. merchants a triple benefit: lower fees, faster settlements, and yield generation on idle balances [1].

The rollout reflects PayPal’s strategic ambition to capture a share of the $3+ trillion crypto market, positioning itself as a mediator between merchants and consumers seeking faster, cheaper, and more accessible payment options. The inclusion of major cryptocurrencies like Solana, XRP, and BNB addresses demand from smaller businesses requiring flexible payment methods. By eliminating technical barriers—such as the complexities of crypto transactions—the service ensures merchants can maintain stable cash flows without holding volatile assets [1]. For example, the ability to instantly convert crypto to fiat ensures operational continuity, even in a fluctuating market.

Analysts highlight the strategic implications of PayPal’s move, noting that its combination of low fees, rewards, and user-friendly interfaces could accelerate crypto adoption among mainstream retailers. The emphasis on stablecoins, which are pegged to fiat currencies, may further mitigate risks associated with price swings, making crypto payments more appealing to risk-averse businesses. However, challenges remain, including regulatory scrutiny and gaps in consumer awareness. PayPal’s success will depend on its ability to navigate evolving crypto regulations while educating merchants on the benefits of decentralized finance [1].

By reducing transaction costs and expanding payment options, PayPal is addressing key pain points in cross-border trade and aligning with broader digitalization trends. The service’s dual functionality—as both a payment processor and a yield-bearing treasury tool—could redefine how small businesses manage their finances in the digital age [1]. For U.S. merchants, the initiative marks a pivotal step toward mainstream crypto adoption, leveraging PayPal’s infrastructure to simplify digital asset use for everyday commerce.

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

[3] [PayPal to Roll Out 'Pay With Crypto' Feature for Merchants](https://www.bloomberg.com/news/articles/2025-07-28/paypal-to-roll-out-pay-with-crypto-feature-for-merchants)

[4] [PayPal enables merchants accept 100 cryptocurrencies](https://coingape.com/paypal-to-let-merchants-accept-payments-in-over-100-cryptocurrencies/)

[5] [PayPal launches crypto payment solution with reduced transaction fees](https://www.investing.com/news/company-news/paypal-launches-crypto-payment-solution-with-reduced-transaction-fees-93CH-4155425)