PayPal Cuts Crypto Fees 90% to 0.99% Enables 4% APY for PYUSD

PayPal has launched a transformative crypto payment solution, “Pay with Crypto,” enabling U.S. merchants to accept over 100 cryptocurrencies, including Bitcoin, Ethereum, and stablecoins like USDT and USDC. The service, rolling out nationwide in the coming weeks, integrates with major wallets such as Coinbase, MetaMask, and Binance, allowing businesses to convert crypto transactions into fiat or PayPal’s stablecoin, PYUSD, at a 0.99% fee—a 90% reduction compared to traditional crypto payment costs [2]. This move positions the platform to tap into a $3+ trillion global crypto market, offering access to 650 million crypto users [3].

The platform simplifies cross-border transactions by automating crypto-to-fiat conversions, shielding merchants from price volatility while enabling instant settlements. Merchants who settle in PYUSD earn a 4% annual percentage yield (APY), incentivizing adoption [5]. Analysts highlight the initiative’s potential to attract small businesses and national retailers seeking cost-effective global payment solutions, as the 0.99% fee addresses key barriers to crypto adoption, such as complexity and volatility [6].

PayPal’s stablecoin, PYUSD, has gained regulatory clarity after the SEC closed its investigation into the token, aligning it with U.S. regulatory expectations and setting a precedent for broader institutional acceptance [1]. The platform has also partnered with Fiserv to expand PYUSD’s use in traditional payment workflows, potentially integrating the stablecoin into enterprise systems [4].

The launch of “Pay with Crypto” is part of PayPal’s broader strategy to redefine global commerce. The platform’s “PayPal World” initiative unites five major digital wallets into a single ecosystem, covering 90% of the $3 trillion crypto market cap [3]. CEO Alex Chriss described this as “inclusive, borderless commerce,” emphasizing infrastructure for a new global economy [1].

For now, the feature targets U.S. merchants, but its implications extend globally. By mitigating crypto’s inherent risks through instant fiat conversion, PayPal is making the technology more palatable to traditional retailers while meeting growing consumer demand for crypto flexibility [7]. The platform’s ability to streamline conversions, reduce fees, and offer compliance-aligned solutions could set a new standard for the sector [6].

Source: [1] PRNewswire: [PayPal Drives Crypto Payments into the Mainstream](https://www.prnewswire.com/news-releases/paypal-drives-crypto-payments-into-the-mainstream-reducing-costs-and-expanding-global-commerce-302514424.html)

[2] Mitrade: [BREAKING: PayPal Goes All-In On Crypto Payments](https://www.mitrade.com/insights/news/live-news/article-3-992086-20250728)

[3] CryptoTicker: [PayPal Just Made Crypto Payments Mainstream](https://cryptoticker.io/en/big-breaking-news-paypal-just-made-crypto-payments-mainstream/)

[4] BanklessTimes: [PayPal Unveils "Pay with Crypto"](https://www.banklesstimes.com/articles/2025/07/28/paypal-unveils-pay-with-crypto-enabling-merchants-to-accept-100-cryptocurrencies/)

[5] AInvest: [PayPal Expands Crypto Payment Options](https://www.ainvest.com/news/paypal-expands-crypto-payment-options-100-coins-merchants-pyusd-faces-york-regulatory-hurdles-2507/)

[6] StockTitan: [PayPal Slashes Crypto Payment Fees 90%](https://www.stocktitan.net/news/PYPL/pay-pal-drives-crypto-payments-into-the-mainstream-reducing-costs-lc9bb46ffmqh.html)

[7] AInvest: [PayPal's Crypto Revolution](https://www.ainvest.com/news/paypal-crypto-revolution-redefining-global-payments-unlocking-investment-opportunities-2025-2507/)