PayPal Launches Crypto Payment Feature for U.S. Merchants 100+ Tokens Supported 90% Lower Cross-Border Costs

PayPal Holdings Inc. has launched a crypto payment feature for U.S. merchants, enabling acceptance of over 100 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and niche tokens like TRUMP and Fartcoin. The tool, branded “Pay with Crypto,” allows businesses to integrate their crypto wallets—such as MetaMask, Binance, and Coinbase Wallet—into PayPal’s checkout system. Transactions are automatically converted into PayPal’s stablecoin, PYUSD, or fiat currency at the point of sale, mitigating exposure to price volatility while streamlining cross-border commerce [4]. The service is available to U.S. merchants (excluding New York residents) and supports 100+ tokens, reflecting a strategic expansion of PayPal’s digital asset offerings [1].

Merchants using the tool will face a 0.99% transaction fee for the first year, with rates increasing to 1.5% afterward. This cost structure is positioned as significantly lower than average U.S. credit card fees, which averaged 1.57% in 2024, according to the Nilson Report [7]. For context, Visa’s fees start at 1.75%, underscoring the competitive edge PayPal’s platform provides [1]. The feature is designed to reduce cross-border transaction costs by up to 90%, addressing pain points for small and medium-sized businesses that often face high fees and complexity in international trade [4].

PayPal’s move aligns with its broader digital asset strategy, including the August 2023 launch of PYUSD, the first major U.S. stablecoin from a fintech firm. The company emphasized the tool’s potential to enhance global commerce, citing examples like a Guatemalan customer purchasing goods from an Oklahoma-based merchant using crypto [7]. Integration with both centralized exchanges (e.g., Coinbase) and decentralized platforms (e.g., Uniswap) further underscores PayPal’s commitment to flexible payment solutions [7].

The rollout follows stablecoin-friendly legislative developments in the U.S., creating a regulated pathway for companies to expand crypto services. Analysts note that the feature could accelerate mainstream adoption of digital assets as a payment method, particularly for small businesses seeking alternatives to traditional banking systems [1]. However, the announcement avoids specific forecasts for user growth or market share gains, focusing instead on immediate operational benefits such as reduced fees and faster processing [2].

By supporting 100+ cryptocurrencies and allowing direct payments from existing crypto wallets, PayPal has positioned itself to rival major exchanges in the crypto payment space. The tool eliminates the need for users to transfer assets to PayPal accounts first, enhancing user experience and reducing transaction friction [6]. This flexibility, combined with PayPal’s early-mover advantage in stablecoins, reinforces its role in shaping the future of digital commerce despite ongoing regulatory uncertainties [10].

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