Bitcoin News Today: PayPal Introduces Crypto Checkout for U.S. Merchants with 0.99% Fee Promo, 100+ Cryptos Accepted

PayPal Holdings Inc. has introduced a new service enabling U.S. merchants to accept payments in over 100 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and XRP. Dubbed “Pay with Crypto,” the feature automates the conversion of digital assets into PayPal’s stablecoin, PYUSD, or fiat currency at checkout, insulating businesses from crypto price fluctuations [1]. This update integrates with major crypto wallets such as Coinbase, MetaMask, and Binance, expanding the utility of digital assets for cross-border transactions. The feature is currently exclusive to U.S. merchants, excluding New York residents, and aims to reduce the complexity and high costs associated with international payments [3].

The initiative includes a promotional transaction fee of 0.99% through July 31, 2026, significantly lower than typical credit card processing rates of 1.5% to 3.5% [2]. After this period, fees will rise to 1.5%, still competitive for merchants, particularly in international sales where traditional cross-border transactions can incur fees up to 10% and take days to process. Merchants holding funds in PYUSD within PayPal accounts can earn approximately 4% annual rewards, further incentivizing the use of the platform’s stablecoin service [1].

PayPal’s CEO, Alex Chriss, emphasized the tool’s potential to enhance profit margins and enable near-instant access to global markets. For instance, a customer in Guatemala could purchase goods from a U.S. vendor using crypto, with the merchant receiving stable U.S. dollars quickly and at reduced fees [1]. This aligns with PayPal’s broader strategy to mainstream cryptocurrency adoption, particularly for small businesses seeking to tap into the 650 million global crypto user community. The company’s stablecoin, PYUSD, has seen its market capitalization surge by nearly 80% since January 2025, reaching $894 million, as regulatory developments like the GENIUS Act provide a legal framework for integrating stablecoins into financial systems [4].

The move positions PayPal to compete with platforms like Stripe and Coinbase, which have also advanced crypto payment solutions. Stripe introduced a USD Coin (USDC) stablecoin option in October 2024, while Coinbase has expanded its merchant tools since 2018 [6]. Analysts note that while the 0.99% fee is competitive, widespread adoption hinges on user education and trust in volatility mitigation tools [7]. Challenges remain, including New York’s exclusion from the rollout and the need for broader regulatory clarity.

By enabling instant conversions and leveraging its stablecoin, PayPal aims to streamline international transactions for merchants who previously faced high fees and operational hurdles. This initiative reflects growing demand from small and medium-sized businesses in sectors like e-commerce, travel, and real estate, which are increasingly adopting digital assets for their efficiency and cost advantages [7]. The feature’s focus on cross-border commerce underscores PayPal’s response to global payment pain points and its ambition to capitalize on the expanding crypto payment ecosystem.

Sources:

[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] [PayPal Will Let Cross-Border Merchants Pay With Crypto](https://www.pymnts.com/news/cross-border-commerce/cross-border-payments/2025/paypal-will-let-cross-border-merchants-pay-with-crypto/)

[4] [PayPal Expands Crypto Payments for U.S. Merchants ...](https://www.coindesk.com/business/2025/07/28/paypay-expands-crypto-payments-for-u-s-merchants-to-cut-cross-border-fees)

[5] [PayPal Drives Crypto Payments into the Mainstream ...](https://www.prnewswire.com/news-releases/paypal-drives-crypto-payments-into-the-mainstream-reducing-costs-and-expanding-global-commerce-302514424.html)

[6] [PayPal Simplifies Cross-Border Crypto Commerce](https://www.adweek.com/commerce/paypal-simplifies-cross-border-crypto-commerce/)

[7] [PayPal Launches Pay With Crypto to Bring 100+ Coins and ...](https://news.bitcoin.com/paypal-launches-pay-with-crypto-to-bring-100-coins-and-wallets-mainstream/)