PayPal Launches “Pay with Crypto”: Instant Conversion, Low Fees & Global Wallet Integration for US Merchants

U.S.-based digital payments giant PayPal has officially launched a groundbreaking cryptocurrency payment service, “Pay with Crypto,” in the American market. Set to roll out to merchants nationwide over the coming weeks, the service supports over 100 major cryptocurrencies and is deeply integrated with PayPal’s own stablecoin, “PayPal USD” (PYUSD). The initiative aims to serve as a bridge, ushering cryptocurrencies into mainstream commercial transactions.

What sets “Pay with Crypto” apart is its ability to instantly convert a user’s cryptocurrency payment into fiat currency—such as U.S. dollars—or PYUSD, all processed seamlessly through PayPal’s existing payments infrastructure. This means that even merchants unfamiliar with, or unwilling to bear the volatility of, crypto markets can effortlessly adopt this new form of payment, much like a traditional online credit card or digital wallet transaction.

According to PayPal, the service currently supports more than 100 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). On the wallet side, integration is already available with leading platforms such as Coinbase, MetaMask, Binance, Kraken, OKX, Phantom, and Exodus, with additional wallet services expected to be supported in future updates.

Regarding fees, “Pay with Crypto” applies a flat 0.99% service charge—significantly lower than conventional international credit card processing fees or SWIFT wire transfer costs, potentially saving merchants up to 90% in transaction fees. More importantly, once a customer completes a crypto payment, the funds are almost instantly credited to the merchant’s PayPal business account, greatly enhancing liquidity and cash flow efficiency.

For merchants opting to retain funds in PYUSD, PayPal offers an additional incentive in the form of an interest-bearing mechanism, with an annual yield of approximately 4%. This feature not only boosts the appeal of stablecoin adoption but also allows merchants to maintain financial flexibility while earning passive income.

PayPal emphasizes that global cryptocurrency market capitalization has now surpassed $3 trillion, with over 650 million users worldwide—underscoring the growing potential of crypto assets in everyday commerce. Through “Pay with Crypto,” PayPal hopes to empower merchants to swiftly enter this burgeoning market and align with the next wave of digital finance.

This new offering marks another milestone in PayPal’s deepening foray into the cryptocurrency space. From enabling users to buy, hold, and transfer Bitcoin and other crypto assets, to launching its proprietary stablecoin PYUSD in 2023, and now fully enabling crypto payments—PayPal is clearly steering itself toward a Web3-centric business paradigm.

Looking ahead, PayPal is poised to extend this service to additional regions and platforms, enabling merchants around the world to adopt decentralized digital asset payments atop a trusted and familiar payments infrastructure. For crypto holders, this signifies a shift from viewing digital currencies solely as investment vehicles to embracing them as bona fide mediums of exchange.

As the global payments industry continues its march toward diversification and digitization, PayPal’s bold move may well serve as a blueprint for other fintech innovators—transforming cryptocurrency payments from abstract concept to everyday reality.

Additionally, PayPal recently unveiled a global payments platform dubbed “PayPal World.” Beyond its own ecosystem, the initial wave of partners includes Mercado Pago, India’s NPCI International Payments Limited (UPI), Tencent’s cross-border payments platform Tenpay Global, and U.S.-based Venmo. This innovative platform will unify a range of major digital wallets and payment systems, enabling nearly two billion users to make cross-border payments, transfers, and purchases. The service is slated to officially launch this fall and is positioned as a cornerstone in PayPal’s vision to establish a unified global digital payments gateway.