The launch of Pay with Crypto signals a bold turning point in PayPal’s push to make crypto a core part of everyday business. (Unsplash)According to the company, Pay with Crypto allows U.S. merchants to accept payments in over 100 cryptocurrencies, including Bitcoin, Ethereum, USDT, XRP, BNB, Solana, and USDC, with automatic conversion into fiat or its native stablecoin, PayPal USD (PYUSD). Merchants can tap into PayPal’s network of over 650 million cryptocurrency users across a $3+ trillion market.
Transaction fee pricing is a key feature of the service, with an introductory rate of 0.99% available through July 31, 2026, and a standard rate of approximately 1.5% thereafter. These rates are lower than typical international credit card processing fees, offering merchants a more cost-effective option for cross-border payments.
Alex Chriss, President and CEO of PayPal, highlighted the company’s efforts to ease the challenges businesses face when expanding internationally. “Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations. Today, we're removing these barriers and helping every business of every size achieve their goals,” he said. “Imagine a shopper in Guatemala buying a special gift from a merchant in Oklahoma City. Using PayPal's open platform, the business can accept crypto for payments, increase their profit margins, pay lower transaction fees, get near instant access to proceeds, and grow funds stored as PYUSD at 4% when held on PayPal.”
The new tool directly addresses longstanding inefficiencies in international commerce. Traditional cross-border payments often incur multiple correspondent bank fees and settlement delays of one to three days. Pay with Crypto offers near-instant settlements and transparent lower costs.
Furthermore, merchants can hold funds in PYUSD, PayPal's dollar-pegged stablecoin, earning up to 4% annual rewards when balances are maintained on the platform.
PayPal has stitched together support for multiple crypto wallets, including Coinbase, MetaMask, Binance, OKX, Kraken, Phantom, and Exodus, simplifying integrations for merchants. This approach enables seamless interaction between digital wallets and legacy Checkout infrastructure.
Meanwhile, the company is accelerating the integration of its stablecoin, PYUSD, across its broader ecosystem. In 2025, PayPal aims to expose PYUSD to 20+ million small and medium-sized merchants, as well as enabling payouts via its Hyperwallet platform for freelancers, contractors, and cross-border suppliers.
In a complementary move, PayPal is seeking regulatory approval to launch PYUSD on the Stellar blockchain, which is known for sub-cent fees and ultra-fast transactions. Stellar’s infrastructure extends over 170 countries, offering robust on- and off-ramps and financial inclusion potential. Once approved, Stellar-based PYUSD is expected to enable near-instant global remittances and small business financing, reducing dependency on traditional banking networks.
The rollout of Pay with Crypto marks a decisive moment in PayPal’s pivot toward embedding cryptocurrency in everyday business operations. Coupled with the broader PYUSD strategy, the push may significantly widen adoption of crypto-based payments beyond niche or specialized applications. PayPal’s scale, serving hundreds of millions of users and millions of merchants, gives it a unique edge in normalising crypto payments. For merchants, the simplified integration and cost savings could make crypto commerce far more attractive.
The service is set to go live for U.S. merchants in the coming weeks. PayPal already launched PayPal World, a global wallet-agnostic platform integrating major regional wallets like UPI, Mercado Pago, and Tenpay Global. Pay with Crypto builds on that network to facilitate seamless cross-border commerce. PayPal’s collaboration with Coinbase, which recently waived fees on PYUSD and enabled direct USD redemption, reinforces its bid to position PYUSD, and PayPal’s wider crypto infrastructure, as a mainstream payment layer.
Cryptocurrency volatility, regulatory uncertainty, and competition from stablecoin incumbents remain key challenges. While PayPal is aggressively scaling PYUSD, the stablecoin currently lags behind giants like Tether and Circle’s USDC in market cap. PayPal’s ability to onboard merchants rapidly and maintain compliance across jurisdictions will determine whether this vision achieves meaningful traction. If it succeeds, the company could redefine digital commerce through hybrid crypto-fiat rails, bridging legacy payment systems with emerging digital currency infrastructure.
PayPal’s “Pay with Crypto” launch and expanded PYUSD strategy represent a strategic leap in integrating cryptocurrency into global commerce. With dramatically reduced fees, cross-border settlement efficiency, and system-wide integration, the firm is positioning itself to bring crypto payments from fringe use into mainstream adoption.
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