PayPal is poised to introduce its new feature called Pay With Crypto, which will enable U.S. merchants to accept a wide range of cryptocurrencies—over 100, including Bitcoin, Ethereum, USDT, and Solana. The process is designed to be seamless, allowing crypto to be instantly converted into U.S. dollars or PayPal’s own stablecoin, PYUSD, with merchants receiving immediate results without handling the cryptocurrency themselves.

Why Merchants Are Paying Attention

This isn’t merely a tech upgrade; it presents substantial savings for businesses, particularly those operating internationally. PayPal is offering a reduced transaction fee of just 0.99% until mid-2026, significantly lower than the typical credit card processing costs.

Tired: Paying high transaction fees for international payments.
Wired: Reducing costs by up to 90% by opting for crypto payments.
✅ Reduce international transaction fees by up to 90%
✅ Offer 100+ cryptocurrencies and eligible wallets at checkout
✅ Get immediate settlements
— PayPal (@PayPal) July 28, 2025

For many small businesses with tight profit margins, this feature can mean substantial savings without requiring additional steps—PayPal manages the conversion and settlement processes entirely.

How It Works Behind the Scenes

The implementation directly connects to popular wallets like Coinbase, MetaMask, and Kraken. When customers choose to pay with crypto, their wallet links to PayPal’s checkout, facilitating the transfer and conversion. Merchants receive payment in either dollars or PYUSD, without needing to manage a crypto wallet or custody arrangements.

Customer Experience Stays the Same

From the user’s perspective, the checkout remains familiar. Users select their cryptocurrency, approve the payment in their wallet, and PayPal manages the rest. Payments are processed similarly to other PayPal transactions, eliminating delays and unexpected currency conversion steps.

Strategic Move into Global Crypto Payments

This action signifies more than just simplified payments for merchants; PayPal aims to establish itself as a long-term player in global crypto commerce. By bridging the gap between fiat and digital currencies, PayPal provides a smoother pathway for international transactions, moving away from traditional banking systems.

Previous Crypto Moves Build Momentum

PayPal has been involved in cryptocurrency for some time. Users are already enabled to buy, sell, and hold digital assets via the app, and the launch of its stablecoin, PYUSD, in 2023 marked a significant step forward. This new tool for merchants builds on that existing structure, integrating both consumers and businesses into a unified transaction platform.

What to Watch Going Forward

As such a feature rolls out, it is expected to attract scrutiny from regulators regarding transaction monitoring, compliance with financial regulations, and potential risks involved. Merchants will seek clarity regarding the speed of settlements, handling of refunds, and the protections in place for transactions.

Why It Matters Now

As credit card fees soar and cross-border commerce becomes increasingly complex, PayPal’s crypto tool presents businesses with an innovative payment acceptance method that can save costs and expedite transactions. For users familiar with cryptocurrencies, this feature decreases the steps needed for online purchases. If implemented smoothly, it could transform how cryptocurrencies are utilized in everyday transactions.