PayPal Turns Crypto Into Everyday Currency With P2P Links

PayPal, one of the world’s largest digital payment platforms, has expanded its peer-to-peer (P2P) payment capabilities to include support for Bitcoin (BTC), Ethereum (ETH), and its own stablecoin, PYUSD. The update, announced on September 15, 2025, marks a significant step in PayPal’s strategy to integrate cryptocurrencies into everyday transactions. This feature is initially launching in the United States, with plans to expand to the United Kingdom, Italy, and other global markets later in the year.

The new functionality is delivered through "PayPal Links," a one-time, personalized link generated within the PayPal app that users can share via text, email, or chat. Through this link, recipients can request or receive payments, including crypto assets. PayPal also confirmed that the service would extend to Venmo and an expanding network of external digital wallets supporting crypto and stablecoins. The feature is designed to make sending and receiving money as seamless as sending a message.

The integration of crypto into PayPal’s P2P flow aligns with the company’s broader strategy to make digital assets more functional in daily life, going beyond their role as investment vehicles. In particular, the inclusion of PYUSD—a stablecoin pegged to the U.S. dollar—helps mitigate concerns around price volatility. This move also has tax implications for users: PayPal has stated that friends-and-family or P2P transfers using crypto or PYUSD will not trigger IRS Form 1099-K reporting, meaning such transactions remain non-reportable under current U.S. regulations.

The rollout is part of PayPal’s "PayPal World" initiative, a global effort to improve interoperability across payment systems and digital wallets. From a competitive standpoint, the company aims to maintain relevance in a financial landscape where peer-to-peer payments, remittances, and cross-border transactions are increasingly leveraging crypto and stablecoin rails. While other platforms may offer faster deployment of similar features, PayPal’s competitive advantages include its large user base, established trust, and regulatory footprint.

CertiK’s recent Skynet 2025 Stablecoin Report highlighted PayPal’s PYUSD as one of the top-performing stablecoins in terms of security, market dynamics, and regulatory alignment. The report noted that PYUSD had doubled in market value in a short time, driven by its integration into the Solana network and the introduction of token-holding rewards. The report also underscored that USDT, USDC, and RLUSD were among the leading stablecoins in terms of both market share and safety metrics.

The broader stablecoin market has shown robust growth in 2025, with total supply exceeding $250 billion and monthly settlement volumes rising by 43%. The report emphasized that stablecoins are becoming increasingly integrated into mainstream finance, with traditional banks and financial institutions exploring their use for cross-border transactions and asset tokenization. This trend is supported by evolving regulatory frameworks, including the European Union’s MiCA regime and the U.S.’s proposed GENIUS Act.

As PayPal moves to expand its crypto capabilities, it is positioning itself at the intersection of traditional finance and decentralized finance (DeFi). The company’s latest update reflects not only the growing demand for crypto-based P2P transactions but also the increasing legitimacy of stablecoins as tools for everyday payments. With regulatory clarity and consumer adoption trends supporting the rise of stablecoins, PayPal’s move could further accelerate their integration into the global financial system.