Bitcoin News Today: PayPal Launches Pay with Crypto Service Cuts Transaction Fees by 90% for U.S. Merchants

PayPal has unveiled a new digital payment feature, "Pay with Crypto," designed to enable U.S. merchants to accept over 100 cryptocurrencies for transactions. The service, set to launch in the coming weeks, allows businesses to convert crypto payments into stablecoins or fiat currencies instantly, addressing cross-border payment challenges while slashing transaction fees by up to 90% compared to traditional credit card processing [1]. The platform supports major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and BNB, covering 90% of the global crypto market cap [2].

The feature aims to reduce operational barriers for merchants by abstracting the complexities of crypto management. For the first year, transaction fees will be 0.99%, rising to 1.5% afterward, positioning it as a competitive alternative to existing international payment methods [3]. PayPal CEO Alex Chriss emphasized the platform’s open design, stating it eliminates key pain points for businesses, including high costs and integration complexities for global transactions. “Businesses of all sizes face incredible pressure when growing globally… Today, we’re removing these barriers and helping every business of every size achieve their goals,” he said [4].

The initiative aligns with PayPal’s broader strategy to bridge traditional finance and digital assets. By converting crypto into fiat or stablecoins within seconds, the platform minimizes exposure to price volatility, making crypto payments more appealing to risk-averse retailers [5]. Analysts suggest the move could accelerate crypto adoption among U.S. merchants by simplifying integration, though success will depend on merchant and consumer uptake [6].

PayPal’s entry into this space underscores growing demand for decentralized payment alternatives. The 90% reduction in cross-border fees is particularly significant for small and medium-sized businesses, which often struggle with traditional banking constraints [8]. However, regulatory compliance with existing KYC and AML requirements remains a critical factor for widespread adoption [9].

By leveraging a $3 trillion crypto market, PayPal seeks to expand global commerce while offering cost-efficient solutions. The platform’s focus on instant settlement and seamless international transactions highlights its potential to streamline trade and reduce friction in global markets [10]. As the feature rolls out, its impact will hinge on integration into existing business workflows and the ability to persuade users to adopt crypto as a mainstream payment method.

Sources:

[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 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)

[3] [PayPal’s crypto tool turns Bitcoin into dollars in seconds](https://qz.com/paypal-pay-with-crypto-bitcoin-international)

[4] [PayPal (PYPL) Launches “Pay with Crypto” to Boost](https://www.tipranks.com/news/paypal-pypl-launches-pay-with-crypto-to-boost-merchant-options-ahead-of-q2-earnings)

[5] [PayPal Launches Pay with Crypto for Cross Border](https://www.digitaltransactions.net/paypal-launches-pay-with-crypto-for-cross-border-transaction/)

[6] [PayPal to Add “Pay With Crypto” for Merchants](https://watcher.guru/news/paypal-to-add-pay-with-crypto-for-merchants)

[8] [PayPal Set To Launch 'Pay With Crypto' For U.S. Merchants](https://www.nasdaq.com/articles/paypal-set-launch-pay-crypto-us-merchants)

[9] [Bitcoin News Today: PayPal's Pay with Crypto Cuts](https://www.ainvest.com/news/bitcoin-news-today-paypal-pay-crypto-cuts-merchant-fees-0-99-boosting-margins-90-year-2507/)

[10] [PayPal Drives Crypto Payments into the Mainstream](https://investingnews.com/paypal-drives-crypto-payments-into-the-mainstream-reducing-costs-and-expanding-global-commerce/)