PayPal Launches Pay with Crypto Service Converting 100+ Cryptocurrencies to Stablecoins in Real Time

PayPal Holdings Inc. has introduced a new payment solution called “Pay with Crypto,” enabling U.S. merchants to accept over 100 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and Solana (SOL). The feature, launched on July 26 and 27, 2025, converts crypto payments into stablecoins or fiat currencies in real time, offering businesses a streamlined way to manage digital transactions while mitigating exposure to market volatility [1]. This development marks a significant expansion of PayPal’s digital asset offerings since 2020, reflecting its growing commitment to integrating cryptocurrencies into mainstream commerce.

The service allows merchants to link their PayPal accounts with popular crypto wallets such as Coinbase, MetaMask, and Binance, enabling customers to pay using a wide range of digital assets. Upon transaction, the crypto is automatically converted into PayPal’s stablecoin, PYUSD—issued by Paxos—or into traditional fiat currency [4]. This ensures merchants receive funds in a predictable, dollar-backed format, addressing concerns about crypto price fluctuations. For the first year, PayPal charges a promotional transaction fee of 0.99%, which will rise to 1.5% afterward, significantly undercutting typical cross-border payment costs [5]. Merchants can also earn up to 4.5% on PYUSD balances held within the platform, incentivizing long-term engagement [6].

The initiative aligns with PayPal’s broader strategy to bridge traditional finance and the crypto ecosystem. By supporting over 100 cryptocurrencies, the company is positioning itself to capture a substantial share of the $3+ trillion crypto market [3]. CEO Alex Chriss emphasized the feature’s potential to democratize global commerce, stating it “levels the playing field” for businesses seeking international expansion while avoiding high card fees and technical barriers [8]. This follows PayPal’s 2023 launch of PYUSD, which has grown to a market value of nearly $900 million [9].

The move underscores a broader industry trend of fintech firms leveraging blockchain technology to modernize payment systems. By simplifying crypto transactions for businesses, PayPal aims to reduce barriers to entry and promote wider adoption of digital currencies. However, the absence of FDIC or SIPC insurance for PYUSD highlights the need for transparency and risk management, as PayPal relies on trust in its stablecoin’s operational stability [11]. The service also caters to small and medium-sized businesses, providing them with access to new customer bases and alternative revenue streams without requiring complex crypto infrastructure [7].

PayPal’s “Pay with Crypto” initiative could accelerate adoption among U.S. merchants, particularly as cross-border e-commerce grows. The company’s focus on cost efficiency and simplicity may set a precedent for other payment processors, though regulatory challenges and market volatility remain persistent hurdles [12]. The feature’s broad crypto support and competitive fee structure position PayPal as a key player in the evolving crypto payments landscape.

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[1] [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)

[3] [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)

[4] [PayPal Launches 'Pay With Crypto' to Help Small Businesses](https://crypto-economy.com/paypal-launches-pay-with-crypto-to-help-small-businesses-accept-digital-assets/)

[5] [PayPal Launches 'Pay With Crypto' to Help Small Businesses](https://crypto-economy.com/paypal-launches-pay-with-crypto-to-help-small-businesses-accept-digital-assets/)

[6] [PayPal Launches 'Pay With Crypto' to Help Small Businesses](https://crypto-economy.com/paypal-launches-pay-with-crypto-to-help-small-businesses-accept-digital-assets/)

[7] [PayPal Launches 'Pay With Crypto' to Help Small Businesses](https://crypto-economy.com/paypal-launches-pay-with-crypto-to-help-small-businesses-accept-digital-assets/)

[8] [PayPal Launches 'Pay With Crypto' to Help Small Businesses](https://crypto-economy.com/paypal-launches-pay-with-crypto-to-help-small-businesses-accept-digital-assets/)

[9] [PayPal Launches 'Pay With Crypto' to Help Small Businesses](https://crypto-economy.com/paypal-launches-pay-with-crypto-to-help-small-businesses-accept-digital-assets/)

[11] [PayPal Launches 'Pay With Crypto' to Help Small Businesses](https://crypto-economy.com/paypal-launches-pay-with-crypto-to-help-small-businesses-accept-digital-assets/)

[12] [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)