PayPal Launches Pay with Crypto for U.S. Merchants Cutting Costs by 90% with 0.99% Fee

PayPal has launched a feature called "Pay with Crypto" for U.S. merchants, enabling businesses to accept payments in over 100 cryptocurrencies, including Bitcoin, Ethereum, USDT, XRP, and Solana. The service automatically converts these digital assets into stablecoins like PYUSD or fiat currency, streamlining international transactions [1]. This initiative addresses longstanding challenges in cross-border payments, which often incur high fees and delays. The fixed 0.99% transaction fee allows merchants to reduce processing costs by up to 90%, a significant advantage for businesses operating globally [1]. By offering crypto as a payment option, PayPal aims to bridge the gap between traditional commerce and the growing crypto economy, which now supports over 650 million users worldwide [1].

The feature integrates with major crypto wallets such as Coinbase, MetaMask, Binance, OKX, Phantom, and Kraken, expanding accessibility for users. Merchants can receive payments instantly, bypass traditional banking processes, and earn 4% interest on PYUSD balances held within PayPal [1]. CEO Alex Chriss emphasized the tool’s potential to accelerate business growth, stating it simplifies global expansion by reducing costs and enhancing consumer choice [1]. The launch aligns with PayPal’s broader strategy to position itself as a leader in borderless commerce, as seen in its recent introduction of PayPal World, a platform uniting five major digital wallets [1].

The move reflects PayPal’s ambition to tap into the $3 trillion crypto market, leveraging partnerships like its collaboration with Fiserv to promote stablecoin adoption. While the service is currently limited to U.S. merchants, the company’s focus on reducing transaction barriers and fostering inclusivity signals a strategic pivot toward digital assets. The feature’s emphasis on cost efficiency—highlighting a potential 90% reduction in fees—addresses a critical pain point for small and medium-sized enterprises competing in global markets [1].

By automating crypto-to-fiat conversion and partnering with established wallets, PayPal mitigates volatility risks for merchants while expanding their customer base. The inclusion of PYUSD, a stablecoin backed by U.S. dollars, further ensures liquidity and stability for transactions. However, the success of the initiative will depend on broader adoption by both merchants and consumers, as well as regulatory developments in the evolving crypto landscape.

PayPal’s approach mirrors trends in the fintech sector, where cross-border payment solutions are increasingly integrating blockchain technology to enhance speed and affordability. The company’s ability to simplify complex processes—such as currency conversion and international transfers—positions it as a key player in the transition toward digital finance. Analysts note that while the 0.99% fee is competitive, the long-term impact will hinge on user trust in crypto-based systems and the platform’s scalability [1].

The launch also underscores PayPal’s commitment to innovation in financial services, a theme reinforced by its recent product launches and strategic alliances. As the crypto market matures, PayPal’s role in bridging traditional and digital finance could influence broader adoption, particularly among businesses seeking cost-effective solutions for global operations [1].

Source: [1] [PayPal Launches ‘Pay with Crypto’ for U.S. Merchants] [https://coinmarketcap.com/community/articles/688792c2fb9c334040026023/]