Bitcoin News Today: PayPal Launches 0.99% Fee Crypto Payment Tool in US Cuts Costs 90% vs Credit Cards

PayPal is set to launch a crypto payment tool in the U.S. on July 28, 2025, enabling merchants to accept over 100 cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Solana (SOL), and stablecoins like USDT and USDC. The tool automatically converts incoming crypto payments into PayPal’s stablecoin (PYUSD) or fiat currencies at checkout, mitigating volatility risks for merchants. The service charges a low transaction fee of 0.99%, which PayPal claims is 90% lower than typical credit card processing rates starting at 1.75%. This feature is designed to simplify cross-border transactions for small and medium-sized businesses, which often face high costs and complexity in traditional international payments [1].

The platform integrates with major crypto wallets such as Coinbase Wallet, MetaMask, OKX, Kraken, Binance, Phantom, and Exodus, streamlining the transaction process for users. By leveraging stablecoin conversions, the tool ensures merchants receive predictable payments while benefiting from the speed and cost efficiency of blockchain technology. PayPal’s move aligns with a broader industry trend of expanding crypto adoption in commerce, as competitors like Stripe and Coinbase also develop similar solutions. Stripe recently introduced USD Coin (USDC) payments across 70 countries, while Coinbase continues to innovate with tools like Coinbase Commerce and the x402 protocol, primarily using USDC on the Base network [2].

Regulatory developments have further supported the integration of crypto into mainstream finance. The recent passage of the GENIUS Act has established a clearer legal framework for stablecoin usage in payment systems, encouraging companies to expand their offerings. PayPal’s tool is positioned to capitalize on this environment, targeting industries such as retail, e-commerce, and travel, where crypto’s advantages in speed and cost reduction are particularly valuable [3].

Small businesses stand to gain significantly from this service. The 0.99% fee structure and stablecoin conversion mechanism address key pain points—high transaction costs and price volatility—while enabling faster cross-border transactions. However, the tool is initially available to U.S. merchants, excluding residents of New York, with potential future expansion contingent on adoption rates. Analysts note that PayPal’s approach could intensify competition in the crypto payment sector, particularly as rivals like Stripe and Coinbase continue to innovate [4].

The launch follows a surge in PYUSD’s market capitalization, which rose nearly 80% since January 1, reaching $894 million. This growth underscores the increasing utility of stablecoins in facilitating real-world transactions. By combining broad crypto support, low fees, and regulatory compliance, PayPal aims to position itself as a leader in the evolving digital payment landscape. The tool’s success will likely depend on its ability to attract merchants seeking cost-effective, flexible payment solutions amid growing demand for crypto-enabled commerce [5].

Source: [1] [PayPal May Enable US Merchants to Accept Bitcoin and Other Cryptocurrencies with New Payment Tool] [https://en.coinotag.com/paypal-may-enable-us-merchants-to-accept-bitcoin-and-other-cryptocurrencies-with-new-payment-tool/]

[2] [PayPal May Enable US Merchants to Accept Bitcoin and Other Cryptocurrencies with New Payment Tool] [https://en.coinotag.com/paypal-may-enable-us-merchants-to-accept-bitcoin-and-other-cryptocurrencies-with-new-payment-tool/]

[3] [PayPal May Enable US Merchants to Accept Bitcoin and Other Cryptocurrencies with New Payment Tool] [https://en.coinotag.com/paypal-may-enable-us-merchants-to-accept-bitcoin-and-other-cryptocurrencies-with-new-payment-tool/]

[4] [PayPal May Enable US Merchants to Accept Bitcoin and Other Cryptocurrencies with New Payment Tool] [https://en.coinotag.com/paypal-may-enable-us-merchants-to-accept-bitcoin-and-other-cryptocurrencies-with-new-payment-tool/]

[5] [PayPal May Enable US Merchants to Accept Bitcoin and Other Cryptocurrencies with New Payment Tool] [https://en.coinotag.com/paypal-may-enable-us-merchants-to-accept-bitcoin-and-other-cryptocurrencies-with-new-payment-tool/]