PayPal Embraces Crypto: Businesses Can Now Accept 100+ Digital Currencies

PayPal Steps Further into the Crypto World

PayPal is making a significant move to integrate cryptocurrencies into mainstream commerce. Their new "Pay with Crypto" service will allow businesses to accept payments in over 100 different cryptocurrencies, including major players like Bitcoin and Ethereum.

This initiative aims to simplify cross-border transactions for merchants, potentially increasing profit margins and reducing the high transaction fees associated with traditional international credit card processing. PayPal is offering an introductory transaction rate of 0.99% until July 31, 2026, significantly lower than typical credit card fees.

How 'Pay with Crypto' Works

Consumers will be able to use a wide range of cryptocurrencies and wallets (such as Coinbase and MetaMask) to make purchases. PayPal will then automatically convert the cryptocurrency into fiat currency (like USD) or a stablecoin, such as PayPal USD (PYUSD), which is pegged to the U.S. dollar. This conversion happens instantly, ensuring merchants receive payments in a stable and readily usable form.

Key Takeaways

• Expanded Crypto Acceptance: Businesses can now accept a wide variety of cryptocurrencies via PayPal.
• Simplified Transactions: Automatic conversion to fiat or stablecoins simplifies accounting and reduces risk for merchants.
• Lower Fees: Introductory transaction rates offer a competitive alternative to traditional credit card processing fees.
• Enhanced Cross-Border Commerce: This move is intended to lower costs and barriers to international transactions.

Alex Chriss, PayPal's CEO, highlighted the challenges that still exist in the crypto space, such as price volatility and wallet complexities. "Pay with Crypto helps relieve these challenges," Chriss stated, emphasizing the role of PayPal in bridging the gap between cryptocurrencies and traditional finance.

A beta version of the system will be available to select businesses in the coming weeks, with wider availability planned later this year. This development comes as the U.S. government passes the GENIUS Act, which establishes a regulatory framework for stablecoins, showing a growing acceptance of digital currencies within the financial system.