PayPal Empowers U.S. Merchants with Crypto Payment Option
- PayPal enables U.S. merchants to accept 100+ cryptocurrencies.
- Transaction fee set at 0.99% for first year.
- Partnerships with major crypto platforms enhance adoption.
PayPal launched ‘Pay with Crypto,’ enabling U.S. merchants to accept payments in over 100 cryptocurrencies, including Bitcoin and Ethereum, directly through its platform, effectively on July 28, 2025.
Facilitating crypto payments offers merchants lower transaction fees and attracts digital-savvy consumers, reflecting a significant trend toward inclusive, borderless commerce with potential positive market dynamics.
PayPal has introduced a new feature allowing U.S. merchants to accept payments in over 100 cryptocurrencies, including Bitcoin, Ethereum, and Tether. This marks a significant expansion in PayPal’s digital commerce capabilities.
Led by CEO Alex Chriss, PayPal’s new initiative aims to facilitate international payment processes for businesses. Merchants will be able to connect various crypto wallets, enabling seamless integration. Alex Chriss remarked, “Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations. Today, we’re removing these barriers and helping every business of every size achieve their goals.”
The introduction is expected to affect the cryptocurrency market by increasing transaction volumes and enhancing merchant adoption. PayPal’s stablecoin, PYUSD, offers a 4% annual reward, encouraging retention within the platform.
The financial implications include a competitive transaction fee of 0.99% for the first year, rising to 1.5%, potentially attracting merchants seeking lower-cost alternatives to traditional credit card fees.
Merchants can integrate via major platforms, potentially increasing digital currency usage for commercial transactions. The collaboration with Fiserv aims for expanded stablecoin payments, enhancing PayPal’s market reach.
Historical trends suggest potential growth in crypto wallet activity and merchant inflows. However, exact on-chain metrics remain undisclosed, necessitating further data to evaluate long-term effects on digital commerce.
