Ethereum News Today: PayPal expands crypto payments to 100+ coins drives 158% PYUSD surge 90% lower cross-border fees

PayPal has launched a new feature enabling U.S. merchants to accept payments in over 100 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), marking a significant expansion of its digital payment capabilities [4][5][7]. The initiative, branded as "Pay with Crypto," allows businesses to process transactions at a 0.99% fee for the first year, a rate that undercut traditional international credit card processing costs by a substantial margin [4]. The service automatically converts crypto payments into PayPal’s stablecoin, PYUSD, or fiat currency at the point of sale, streamlining settlement for merchants [4].

The feature integrates with external wallets and exchanges, including Coinbase, Kraken, and Binance, as well as institutional platforms like Fiserv, broadening access for both small and large businesses [4]. PayPal CEO Alex Chriss emphasized the tool’s role in addressing challenges faced by companies expanding globally, such as high transaction fees and complex integration processes [4]. The service is currently available to U.S. merchants, excluding those in New York [4].

Financial metrics highlight the potential impact of the rollout. Since its launch, PYUSD volume surged by 158%, driven by the feature’s adoption, while cross-border fees for merchants were reduced by up to 90% [10]. Analysts attribute the increased efficiency to the automatic conversion of crypto into stable assets, minimizing exposure to price volatility [6]. The initiative also aligns with recent stablecoin-friendly legislation, which has created a regulatory environment more conducive to crypto adoption [6].

PayPal’s strategic expansion reflects its broader ambitions in borderless digital commerce. The service now supports 100+ cryptocurrencies, including Solana (SOL), Binance Coin (BNB), and Ripple (XRP), underscoring the company’s commitment to diversifying its crypto offerings [4][9]. A partnership with Fiserv, dubbed PayPal World, aims to unify five major digital wallets on a single platform, further enhancing cross-border transaction capabilities [4].

However, challenges persist, particularly around regulatory scrutiny of stablecoins and the inherent volatility of crypto assets. Market experts anticipate heightened regulatory interest as cryptocurrency usage in commerce grows [6]. Despite these risks, PayPal’s move has already drawn attention for its potential to reshape small business operations, offering instant fund access and competitive profit margins [4].

Source: [4] PayPal introduces cryptocurrency payment feature for US merchants, [https://finance.yahoo.com/news/paypal-introduces-cryptocurrency-payment-feature-074933313.html] [5] PayPal says it will allow businesses to accept payments in more than 100 types of cryptocurrencies, [https://www.cbsnews.com/news/paypal-cryptocurrency-crypto-payment-businesses-bitcoin-ethereum/] [6] PayPal Launches Crypto Checkout Tool, Adds Support for 100+ Tokens, [https://cointelegraph.com/news/paypal-crypto-checkout-tool-support-100-tokens] [7] PayPal to let merchants accept 100+ new coins, [https://mashable.com/article/paypal-pay-with-crypto-announcement] [9] PayPal Expands Crypto Payments: What It Means for Altcoins, [https://beincrypto.com/paypal-global-crypto-rollout-pyusd-solana-ethereum] [10] PayPal Expands Crypto Payments: What It Means for Altcoins, [https://beincrypto.com/paypal-global-crypto-rollout-pyusd-solana-ethereum].