Bitcoin News Today: PayPal's Pay with Crypto Cuts Merchant Fees 0.99% Boosting Margins 90% in First Year

PayPal Holdings Inc. (PYPL) has introduced a new service called “Pay with Crypto,” enabling U.S. merchants to accept payments in over 100 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The feature, set to roll out in the coming weeks, allows merchants to instantly convert crypto payments into stablecoins or fiat currencies, addressing cross-border transaction challenges and reducing associated fees. By leveraging a $3 trillion cryptocurrency market, PayPal aims to expand global commerce while offering cost-efficient solutions for businesses. The service supports 90% of the crypto market cap, according to company disclosures, and is positioned to streamline international trade by minimizing currency conversion complexities [1][2][3].

The initiative marks a strategic shift for PayPal, which has long sought to bridge traditional finance and digital assets. Merchants using the platform can now accept a wide range of digital currencies without holding or managing them directly, a feature designed to lower operational barriers. The service reduces merchant transaction fees to 0.99% for the first year compared to standard international rates, a change that could enhance business margins by close to 90% for those accepting crypto payments [4][5]. CEO Alex Chriss emphasized the platform’s open design, stating that it addresses key pain points for businesses, including high costs and complex integrations 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,” Chriss said [6].

The broader implications for the financial landscape include promoting the acceptance and stability of cryptocurrencies. By abstracting the technical complexities of crypto transactions, PayPal reduces the risk of price fluctuations and regulatory scrutiny for businesses. The service’s focus on fiat and stablecoin conversions may also mitigate volatility concerns, making it more appealing to risk-averse retailers [7]. Analysts suggest the move could accelerate crypto adoption among U.S. merchants by simplifying integration, though long-term success will depend on merchant adoption rates and consumer willingness to use crypto for everyday purchases [8].

PayPal’s entry into this space aligns with growing demand for decentralized payment alternatives. The platform’s ability to convert crypto into dollars or stablecoins within seconds addresses a major barrier to adoption—volatility—while maintaining the efficiency of digital assets [9]. The company’s emphasis on cost savings (up to 90% in cross-border fees) is particularly significant for small and medium-sized businesses navigating traditional banking constraints [10]. However, the service’s impact on regulatory frameworks remains uncertain, as compliance with existing KYC and AML requirements will be critical for widespread adoption.

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 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/)

[3] [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)

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

[5] [PayPal Opens Bitcoin And Crypto Payments To US Merchants](https://bitcoinmagazine.com/news/paypal-opens-bitcoin-and-crypto-payments-to-us-merchants)

[6] [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)

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

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