PayPal launches crypto payment services for U.S. merchants

PayPal launched a new cryptocurrency payment service Monday that allows U.S. merchants to accept more than 100 different digital currencies, marking the payment giant's latest push into the rapidly growing crypto market. The service, called "Pay with Crypto," enables businesses to receive payments in popular cryptocurrencies like Bitcoin and Ethereum, as well as more unusual tokens including Trump's memecoin and novelty tokens like Fartcoin.

The move comes as crypto markets surge and President Donald Trump's administration signals strong support for digital assets, with PayPal positioning itself to tap into what it describes as a $3+ trillion cryptocurrency market.

Simplified Cross-Border Commerce

PayPal's new service aims to address a major pain point for merchants: the high cost of international transactions. The company charges a promotional fee of just 0.99% on crypto transactions for the first year, then increases it to 1.5%. This rate is significantly lower than the 1.57% average that U.S. businesses paid to credit card companies in 2024, according to the Nilson Report.

"Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations," said Alex Chriss, president and CEO of PayPal. The company claims merchants can save up to 90% on transaction fees compared to international credit card processing.

The service works by allowing customers to connect existing crypto wallets from providers like Coinbase, MetaMask, and Phantom to PayPal's checkout page. When a payment is made, PayPal automatically converts the cryptocurrency into the company's own stablecoin PYUSD, which is then converted to U.S. dollars for the merchant.

Strategic Crypto Expansion

The launch represents PayPal's return to aggressive crypto expansion after scaling back during the 2022 "crypto winter." The company first allowed U.S. users to buy, sell, and hold select cryptocurrencies in 2020, then expanded the feature to Venmo. In September, PayPal began letting businesses buy, hold, and sell crypto from their merchant accounts.

According to Fortune, PayPal's PYUSD stablecoin has grown its market capitalization by about 70% since the beginning of the year to approximately $850 million. The company also offers merchants a 4% yield on PYUSD balances held with PayPal.

"There's a worldview where you can imagine that the world is moving on chain," Frank Keller, PayPal executive vice president, told Fortune. The service will initially be available to smaller U.S. merchants in the coming weeks, with plans to expand to larger enterprise customers and international markets, though PayPal declined to provide a timeline.