XRP News Today: PayPal Integrates XRP, Solana for International Payments via PYUSD, Cuts Fees to 0.99%

PayPal’s “Pay with Crypto” feature, launching on July 28, 2025, allows U.S. merchants to accept cryptocurrencies such as XRP and Solana for international transactions. The platform converts crypto payments into its stablecoin, PYUSD, before settling in U.S. dollars, offering instant settlements and low fees. During a promotional period, transaction fees are capped at 0.99%, a rate expected to rise to 1.5% afterward [1]. This initiative, highlighted by CEO Alex Chriss, aims to reduce the high costs of cross-border payments for U.S. businesses, addressing a persistent pain point in global commerce [1].

The feature supports a broader range of cryptocurrencies than PayPal’s initial 2020 crypto offerings, reflecting its evolving strategy to integrate digital assets into mainstream payments. By leveraging PYUSD, PayPal minimizes volatility risks for merchants and customers, ensuring price stability during transactions. This approach aligns with the company’s 2023 launch of PYUSD, which has since maintained a strong market capitalization. The expansion also builds on earlier milestones, such as allowing merchants to manage on-chain assets in 2024 [1].

However, the rollout is not without limitations. New York remains excluded due to regulatory constraints, underscoring the fragmented nature of crypto adoption in the U.S. Regulatory hurdles and the need for merchant education pose ongoing challenges, though PayPal’s phased approach suggests a long-term commitment to overcoming these barriers. Compatibility with major wallets like Coinbase, MetaMask, and Binance further enhances accessibility for users [1].

The move positions PayPal to capitalize on growing demand for faster, lower-cost international transactions. Traditional cross-border payments often involve high fees and delays, whereas crypto-based solutions offer near-instant settlements and transparency. By reducing friction for merchants, PayPal aims to expand their access to global markets while reinforcing its leadership in digital payment innovation. The focus on XRP and Solana highlights the platform’s emphasis on efficient blockchain networks, which are critical for scaling international transactions [1].

The introduction of “Pay with Crypto” underscores PayPal’s strategic alignment with the crypto ecosystem. Its integration of stablecoins and instant settlement mechanisms addresses key concerns around volatility and liquidity, which have historically hindered crypto adoption. By building a robust infrastructure for crypto payments, PayPal seeks to simplify the transition for businesses and consumers, fostering broader acceptance of digital assets in everyday commerce [1].

Despite the optimism, the success of this feature will depend on factors beyond PayPal’s control, including regulatory developments and market confidence in cryptocurrencies. The company’s ability to navigate these dynamics will determine whether the initiative becomes a lasting solution for international payments or a short-lived experiment. For now, the launch marks a significant step in PayPal’s journey to redefine cross-border transactions through blockchain technology.

Source: [1] [PayPal May Enable US Merchants to Accept XRP and Other Cryptos for International Payments] [https://en.coinotag.com/paypal-may-enable-us-merchants-to-accept-xrp-and-other-cryptos-for-international-payments/]