Bitcoin News Today: PayPal Launches Low-Fee Crypto Payment Service for U.S. Merchants 0.99% Rate for First Year

PayPal has expanded its digital payment offerings by enabling U.S. merchants to accept transactions in over 100 cryptocurrencies, including Bitcoin, Ethereum, and niche tokens like Trump’s memecoin and Fartcoin. The service, dubbed “Pay with Crypto,” allows businesses using PayPal’s online payments platform to integrate the feature without requiring technical expertise. Transactions are processed by converting cryptocurrencies into U.S. dollars via PayPal’s stablecoin, PYUSD, after converting the crypto on centralized or decentralized exchanges. This marks a significant step in PayPal’s broader strategy to integrate blockchain technology into mainstream commerce [2].

The fintech giant has structured the service with a promotional fee of 0.99% for the first year, which it claims is lower than the 1.57% average rate U.S. businesses paid to credit card processors in 2024 [1]. After the introductory period, fees will rise to 1.5%. Executive Vice President Frank Keller emphasized the cost advantage, noting that the move aligns with PayPal’s vision of blockchain adoption, though he acknowledged the transition would not be immediate [1]. The process simplifies volatility risks for merchants by settling payments in fiat currency, ensuring they receive USD regardless of crypto market fluctuations.

This initiative builds on PayPal’s earlier forays into digital assets, including allowing U.S. users to buy, sell, and hold cryptocurrencies since 2020 and expanding the feature to Venmo. However, the company scaled back public enthusiasm during the 2022 crypto downturn. The current rollout coincides with a more favorable regulatory climate under the Trump administration and a broader industry push toward mainstream adoption. PayPal’s PYUSD stablecoin has seen its market capitalization rise by 70% since January 2025, reaching $850 million, according to CoinGecko [2].

Analysts suggest the move could enhance PayPal’s competitiveness against rivals like Stripe and Square, which are also exploring crypto integrations. However, success will depend on factors such as merchant adoption, regulatory clarity, and crypto market stability [5]. The low-fee model is designed to attract small businesses, which may have been hesitant to adopt crypto due to high transaction costs. By reducing barriers, PayPal aims to drive consumer use of cryptocurrencies for everyday purchases, potentially boosting demand for supported assets like Bitcoin and altcoins such as XRP and BNB [6].

The timing of the launch aligns with broader industry trends, including Coinbase’s introduction of stablecoin rewards programs. Yet PayPal’s focus on direct, low-cost merchant solutions differentiates it from initiatives that prioritize consumer incentives. The company plans to extend the service to larger enterprises in the U.S. and globally, though no timeline has been specified [2].

PayPal’s CEO, Alex Chriss, highlighted the potential for cross-border commerce, citing a hypothetical Guatemalan shopper purchasing from an Oklahoma-based merchant. The expansion reflects the company’s long-term goal of positioning itself as a leader in decentralized finance while leveraging blockchain to enhance its payment infrastructure [4]. As crypto markets continue to evolve, PayPal’s ability to scale adoption and maintain compliance will determine the initiative’s impact on the digital payments landscape.

Sources:

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

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

[4] [title]Digital wallet payments must flow beyond borders[/title] [url]https://www.msn.com/en-in/money/news/digital-wallet-payments-must-flow-beyond-borders-paypal-ceo-alex-chriss/ar-AA1JaEr4[/url]

[5] [title]PayPal Expands Cryptocurrency Payment Options for U.S.[/title] [url]https://www.binance.com/en/square/post/27554108381809[/url]

[6] [title]PayPal launches Pay with Crypto service for US merchants[/title] [url]https://www.streetinsider.com/Corporate+News/PayPal+launches+Pay+with+Crypto+service+for+US+merchants/25103715.html[/url]