PayPal is making it easier for businesses to accept cryptocurrency, introducing a new feature that could reduce fees by up to 90% and speed up international transactions.
PayPal’s new “Pay with Crypto” will allow its customers to pay directly from major crypto wallets like MetaMask, Coinbase, and Exodus. Merchants using PayPal’s platform will be able to take payments in more than 100 cryptocurrencies, including Bitcoin, XRP, and Ethereum.
When a transaction is made, PayPal instantly converts the cryptocurrency into traditional currency or its own stablecoin, PayPal USD (PYUSD), and deposits the funds into the merchant’s account. Stablecoins are digital currencies tied to assets like the U.S. dollar to minimize price fluctuations.
PayPal CEO Alex Chriss said the move will help businesses by lowering costs and speeding up settlements, especially for cross-border sales. The company will charge a 0.99% transaction fee for crypto payments, a rate locked in until July 31, 2026. That’s significantly lower than typical credit card fees, which range from 1.5% to 3.5%.
To further encourage adoption, PayPal is offering merchants a 3.7% annual reward for holding funds in its PYUSD stablecoin.
The PayPal Pay with Crypto feature is currently available to US-based merchants, but it’s expected to roll out in other regions soon.