PayPal Offers 100+ Crypto Payments to U.S. Merchants 90% Cost Savings vs Credit Cards

PayPal Holdings Inc. has launched a service enabling U.S. merchants to accept over 100 cryptocurrencies through its “Pay with Crypto” platform, marking a significant expansion of its digital asset capabilities. The initiative allows businesses to process transactions in tokens like Bitcoin, Ethereum, USDT, XRP, BNB, Solana, and PayPal’s own stablecoin, PYUSD. Upon processing, crypto payments are automatically converted into fiat currency or stablecoins, with a flat transaction fee of 0.99% for the first year, rising to 1.5% afterward. This rate is substantially lower than the typical 2.99% charged for cross-border credit card transactions, potentially saving merchants up to 90% in transaction costs [1].

The service integrates with third-party wallets such as Coinbase, MetaMask, OKX, Binance, Kraken, Phantom, and Exodus, connecting to approximately 650 million global crypto users. Merchants holding balances in PYUSD, a stablecoin backed by U.S. dollar deposits and short-term Treasuries, can earn 4% in rewards within their PayPal accounts. The platform aims to simplify crypto adoption for small businesses by eliminating the need for complex technical infrastructure, enabling seamless integration without engineering expertise [1].

PayPal’s move aligns with its broader strategy to dominate cross-border digital payments. Recent partnerships, including a collaboration with Fiserv to expand stablecoin usage and the launch of PayPal World—a platform linking five global digital wallets—highlight its vision of creating a low-cost, scalable financial ecosystem. The initiative targets a $3 trillion crypto market that has grown rapidly over the past decade, positioning PayPal to capture a larger share of the fintech landscape. However, regulatory hurdles remain: New York merchants must await approval from the state’s Department of Financial Services before activation, as PayPal has yet to secure that authorization [1].

The cost advantage for merchants is significant. For instance, a $1,000 crypto transaction would incur a $9.90 fee under PayPal’s model, compared to roughly $30 for a credit card equivalent. This margin could be critical for small businesses with narrow profit margins. The phased rollout, with most U.S. merchants gaining access immediately and New York awaiting regulatory clearance, underscores PayPal’s cautious approach to compliance [1].

The platform reflects growing institutional confidence in crypto as a payment method. By reducing barriers for businesses and leveraging major wallet providers, PayPal is likely to accelerate mainstream adoption. However, long-term success depends on navigating regulatory scrutiny and managing crypto’s inherent volatility. The firm’s ability to convert digital assets into fiat seamlessly—without exposing merchants to price fluctuations—positions it as a competitive alternative to traditional payment networks [1].

Source: [1] [PayPal Unleashes Crypto Carnival: 100+ Coins Now Accepted By US Merchants] [https://www.newsbtc.com/news/breaking-paypal-unleashes-crypto-carnival-100-coins-now-accepted-by-us-merchants/].