PayPal has announced a significant expansion of its cryptocurrency capabilities with the launch of “Pay with Crypto,” a new service that allows U.S. merchants to accept payments in over 100 cryptocurrencies. This major development, announced on July 28, 2025, represents PayPal’s most ambitious push yet to mainstream cryptocurrency payments for businesses.
Key Features of Pay with Crypto
The new service enables merchants to accept popular cryptocurrencies including Bitcoin, Ethereum, Tether (USDT), Circle’s USDC, Solana, XRP, and BNB. Customers can pay using various crypto wallets such as Coinbase, MetaMask, OKX, Phantom, Binance, Kraken, and Exodus.
When customers pay with cryptocurrency, payments are automatically converted to fiat currency or PayPal’s PYUSD stablecoin for deposit into merchant accounts. This means businesses don’t need to handle cryptocurrencies directly or worry about price volatility, as they receive payments in traditional dollars.
Significant Cost Savings
PayPal’s crypto payment solution offers substantial cost advantages for businesses, particularly those dealing with international transactions. The service charges a 0.99% transaction fee for the first year, then increases to 1.5%. This represents up to 90% savings compared to international credit card processing fees, which can exceed 10% for small businesses accepting payments from overseas customers.
“For small businesses accepting payments from buyers abroad, the associated fees can exceed 10%,” explained Frank Keller, PayPal’s general manager of large enterprise and merchant platform. “Meanwhile, the ‘Pay with Crypto’ transactions settle instantly and will initially cost 0.99% per transaction.”
Enhanced Business Utility
The service addresses several pain points for merchants expanding globally:
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Near-instant settlement compared to traditional banking systems that can take several days
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Lower transaction fees especially for cross-border payments
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Access to a growing customer base of 650 million users in the $3 trillion cryptocurrency market.
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PYUSD rewards of 4% annual yield for merchants who hold funds as PayPal’s stablecoin
PayPal CEO Alex Chriss illustrated the service’s potential impact: “Imagine a shopper in Guatemala buying a special gift from a merchant in Oklahoma City. Using PayPal’s open platform, the business can accept crypto for payments, increase their profit margins, pay lower transaction fees, get near instant access to proceeds, and grow funds stored as PYUSD at 4% when held on PayPal”.
Rollout and Future Plans
The Pay with Crypto feature will be available to U.S. merchants in the coming weeks, with beta testing beginning soon and broader availability expected later in 2025. PayPal plans to expand the service to larger enterprise customers and global markets, though no specific timeline has been provided.
This launch builds on PayPal’s broader cryptocurrency strategy, which includes its PYUSD stablecoin that has grown about 70% since the beginning of 2025 to approximately $850 million in market capitalization. The company first introduced crypto buying and selling capabilities in 2020 and has been steadily expanding its digital asset offerings.
The new service represents PayPal’s vision of “borderless commerce” and demonstrates the company’s commitment to integrating cryptocurrency into mainstream payment systems. By covering 90% of the $3+ trillion cryptocurrency market capitalization, Pay with Crypto positions PayPal as a leader in bringing digital assets to everyday business transactions.
