PayPal Launches Crypto Payment System for U.S. Businesses with 0.99% Fee

PayPal has introduced “Pay with Crypto,” a new feature that allows U.S. businesses to accept over 100 cryptocurrencies, including major assets like Bitcoin and Ethereum [1]. The initiative is designed to reduce transaction fees for merchants, positioning PayPal as a key player in the evolving digital currency landscape [1]. Under this system, crypto payments are converted instantly into either PYUSD or USD, ensuring rapid fund delivery to businesses [1].

The service charges a flat transaction fee of 0.99%, significantly lower than the typical 1.5%–3.5% fees associated with credit card transactions [1]. This cost-effective model is expected to enhance financial efficiency for merchants, potentially accelerating the adoption of crypto payments across various industries [1]. Alex Chriss, President and CEO of PayPal, emphasized the company’s long-standing expertise in digital payments, stating that the new system enables users to link their crypto wallets, pay with any token, and convert funds into stable value within seconds [1].

This expansion builds on PayPal’s initial foray into crypto services in 2020, when it enabled U.S. users to buy, sell, and hold Bitcoin and Ethereum [1]. The latest move broadens PayPal’s offering to support more than 100 digital assets, surpassing earlier crypto integrations by other major payment providers [1]. Analysts suggest that PayPal’s competitive fee structure and broad asset support could influence merchant preferences and drive broader acceptance of crypto-based payment systems [1]. The use of PYUSD for conversions also points to a potential increase in the utilization of stablecoins for settlement purposes [1].

By integrating crypto payments into its existing infrastructure, PayPal is likely to reshape how businesses handle transactions, blending traditional finance with emerging digital assets. The move reflects PayPal’s strategic commitment to innovation and its vision of a more inclusive and efficient global payment ecosystem [1].

Source: [1] PayPal Launches "Pay with Crypto" for U.S. Businesses (https://coinmarketcap.com/community/articles/68975db78132ce6586ec2168/)