PayPal Cuts Crypto Fees to 0.99% for 100+ Coins as U.S. Merchants Adopt Digital Assets

PayPal Holdings Inc. has expanded its cryptocurrency payment capabilities, enabling U.S. merchants to accept over 100 digital assets through its “Pay with Crypto” feature. The service, set to launch “in the coming weeks,” introduces a flat transaction fee of 0.99% for the first year, increasing to 1.5% thereafter. This move aims to attract merchants by reducing costs compared to traditional cross-border credit card transactions, which often carry fees exceeding 3% [1].

The platform allows businesses to automatically convert crypto payments into fiat or stablecoins, mitigating exposure to price volatility. Supported tokens include Bitcoin (BTC), Ethereum (ETH), USDT, XRP, BNB, Solana (SOL), and PayPal’s own stablecoin, PYUSD. The latter, backed by U.S. dollar deposits and short-term Treasuries, offers merchants 4% annual rewards on balances held in their PayPal accounts [1].

Integration with major wallets—such as Coinbase, MetaMask, OKX, Binance, Kraken, Phantom, and Exodus—extends the service’s reach to approximately 650 million global crypto users. This collaboration lowers barriers for small businesses, which can adopt crypto payments without significant technical infrastructure. For instance, a $1,000 crypto transaction would incur a $9.90 fee, versus $30 under conventional systems [1].

PayPal’s strategy aligns with its broader ambition to tap into the $3 trillion crypto market, which has grown rapidly over the past decade. The company has previously signaled global expansion through initiatives like PayPal World, a cross-border wallet platform, and a partnership with Fiserv to promote stablecoin usage. These efforts reflect a focus on building infrastructure for low-cost, fast money transfers, positioning PayPal as a key player in the fintech sector [1].

However, regulatory challenges persist. The service will face delays in New York due to pending approval from the state’s Department of Financial Services. This highlights the fragmented regulatory landscape for crypto adoption, with PayPal’s plans for stablecoins and on-ramps likely attracting scrutiny in other key markets [1].

The rollout underscores PayPal’s confidence in crypto’s potential as a mainstream payment method. By reducing transaction costs and streamlining user experience, the company could accelerate the shift from speculative assets to practical utility. Yet, success hinges on sustained demand from merchants and consumers, as well as the ability to navigate regulatory and market risks.

Source: [1] [title: PayPal Unleashes Crypto Carnival: 100+ Coins Now ...] [url: https://www.newsbtc.com/news/breaking-paypal-unleashes-crypto-carnival-100-coins-now-accepted-by-us-merchants/]