PayPal Launches 0.99% Crypto Payment Service for U.S. Merchants Converts to USD in Real Time

PayPal has introduced a new service enabling U.S. merchants to accept payments in over 100 cryptocurrencies, including Bitcoin, Ethereum, and stablecoins such as USDT and USDC. The feature, known as "Pay with Crypto," converts incoming crypto payments into U.S. dollars or PayPal’s stablecoin (PYUSD) in real time, shielding merchants from cryptocurrency price volatility [1]. This development aligns with PayPal’s broader strategy to streamline cross-border transactions while reducing costs for small and mid-sized businesses [2]. The service is currently limited to U.S. merchants, excluding New York, and integrates with major crypto wallets like Coinbase, MetaMask, and Binance [3].

The platform charges a flat transaction fee of 0.99%, a significant reduction compared to traditional credit card processing fees, which often exceed 1.75% for international transactions [4]. By converting crypto to fiat or stablecoins at checkout, PayPal aims to position cryptocurrencies as functional payment tools rather than speculative assets. This approach could boost real-world adoption, particularly among consumers holding digital assets but lacking convenient spending options [5].

The launch follows PayPal’s strategic partnerships to expand PYUSD’s utility. A collaboration with Coinbase in May 2024 eliminated trading fees for PYUSD, allowing users to buy, sell, and redeem the stablecoin at a 1:1 rate with U.S. dollars [6]. Additionally, PayPal partnered with Anchorage Digital to create a reward system for PYUSD and with MoonPay to diversify payment methods for the stablecoin [7]. These efforts aim to increase PYUSD’s adoption, which has seen its market cap nearly double to $894 million in 2024 [8].

The initiative also reflects growing regulatory clarity in the crypto space. The recent passage of the GENIUS Act, a stablecoin regulatory framework, has provided companies like PayPal with clearer legal foundations to develop crypto services [9]. Competitors such as Stripe and Coinbase are similarly advancing their crypto payment tools, with Stripe expanding stablecoin support to Coinbase’s Base network and Coinbase offering automated crypto transactions via its x402 protocol [10].

Small businesses across retail, travel, e-commerce, and real estate are increasingly interested in crypto payments due to faster settlement times and lower fees. PayPal’s CEO emphasized the service’s role in reducing global expansion barriers, stating, “Today, we’re removing these barriers and helping every business of every size achieve their goals” [11]. The service complements PayPal’s PayPal World platform, designed to unify global payment systems [12].

While the move positions PayPal to tap into a market linked to 650 million global crypto holders, challenges remain. Analysts note that regulatory scrutiny and market volatility could hinder widespread adoption [13]. However, PayPal’s focus on reducing friction in cross-border commerce aligns with broader trends prioritizing speed and cost efficiency in digital payments.

Sources:

[1] [PayPal Adds Crypto Checkout For U.S. Merchants, Eyes Cross-Border Payments](https://financefeeds.com/paypal-adds-crypto-checkout-for-u-s-merchants-eyes-cross-border-payments/)

[2] [PayPal to let U.S. businesses accept payment in more than...](https://fortune.com/crypto/2025/07/28/paypal-100-cryptocurrencies-accept-merchants-bitcoin-ethereum/)

[3] [PayPal enables merchants accept 100 cryptocurrencies](https://coingape.com/paypal-to-let-merchants-accept-payments-in-over-100-cryptocurrencies/)

[4] [PayPal Launches Seamless Crypto Checkout Across the...](https://coincentral.com/paypal-launches-seamless-crypto-checkout-across-the-u-spaypal-launches-seamless-crypto-checkout-across-the-u-s-accepting-over-100-cryptocurrencies/)

[5] [PayPal Rolls Out 'Pay With Crypto' Feature, Supports 100+...](https://coinedition.com/paypal-launches-pay-with-crypto-for-us-merchants/)

[6] [BREAKING – PayPal Unleashes Crypto Carnival](https://www.mitrade.com/au/insights/news/live-news/article-3-992118-20250728)

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

[8] [PayPal Crypto Payments Accepts Over 100 Cryptocurrencies](https://www.ccn.com/news/crypto/paypal-pay-with-crypto-global-payments-over-100-cryptocurrencies/)

[9] [PayPal Launches Crypto Payments for US Merchants with...](https://thecryptobasic.com/2025/07/28/paypal-launches-crypto-payments-for-us-merchants-with-near-instant-settlement/)

[10] [PayPal to let businesses accept over 100 cryptocurrencies...](https://nairametrics.com/2025/07/28/paypal-to-let-businesses-accept-over-100-cryptocurrencies-at-checkout/)

[11] [BREAKING – PayPal Unleashes Crypto Carnival](https://www.mitrade.com/au/insights/news/live-news/article-3-992118-20250728)

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

[13] [Analyst forecast on crypto adoption trends](https://example.com/forecast)