PayPal has introduced a new payment system in the United States that lets businesses accept over 100 different cryptocurrencies. The update provides merchants with a direct way to receive digital asset payments without handling wallets or volatile tokens themselves.
Under the new setup, customers can pay with assets like Bitcoin, Ethereum, USDT, and Solana. Some smaller coins, including memecoins, are also supported. Merchants receive the equivalent amount in either U.S. dollars or PayPal’s own stablecoin, PYUSD, at the moment of transaction. There is no need to wait for network confirmations or manage exchange processes.
Lower Transaction Fees for Cross-Border Payments
PayPal is offering the service at a 0.99% fee for the first year. After that, the rate increases to 1.5%. That is still lower than international card payments, which usually cost around 2% to 4%. For small businesses that serve global buyers, the savings could make a noticeable difference.
Most traditional cross-border transactions move through several financial intermediaries. That often creates delays, raises costs, and causes currency conversion losses. PayPal’s crypto tool avoids those steps by converting the crypto to dollars in real time. The funds then appear in the merchant’s PayPal account without additional processing.
Wallet Support and Settlement Options
To use the service, customers can connect wallets from platforms like MetaMask, Coinbase, Binance, Kraken, and others. The checkout accepts payments made from any of the supported wallets and tokens. On the merchant side, the system handles the conversion and settles the funds instantly.
If a payment comes in a coin that is either not supported or thinly traded, PayPal’s system may route the transaction through decentralized exchanges. From there, the funds are converted to PYUSD or USD before being deposited. The process is automated and does not require merchants to take action.
Regulatory Limits Still Apply
While the tool is active across most of the U.S., it is currently unavailable to merchants in New York. The state’s regulators have not yet cleared the use of PYUSD for local businesses or residents. This limits the service in one of the country’s largest financial markets.
In addition, like most digital assets, PYUSD and other supported coins do not carry federal protections. They are not insured by the FDIC or the SIPC. In the event of wallet compromise, insolvency, or technical failure, funds could be lost without reimbursement.
Legislation Prompted Changes to Stablecoin Use
The feature was released after the GENIUS Act became law. This legislation restricts how stablecoins can earn interest and steers their design toward payments and trading use cases. For platforms like PayPal, that shift led to changes in how stablecoins fit into their services.
Since early 2025, PYUSD’s market capitalization has grown sharply. This suggests more users and businesses are starting to adopt it for transactions instead of only holding it. While other platforms like Stripe and Coinbase are also rolling out crypto-based tools for merchants, PayPal’s approach focuses on built-in conversion and direct access for sellers.
Market Reach and System Growth
PayPal’s network now connects with wallets used by hundreds of millions of crypto holders worldwide. By allowing them to pay with crypto while settling in fiat, the system gives U.S. merchants a way to reach overseas customers without expanding banking infrastructure.
The company said its service connects to more than $3 trillion in crypto market value. It supports over 100 tokens and plugs into major wallet platforms. The system is designed to make use of APIs and automated agents, which means the payments can be triggered by software, not only human users.
PYUSD also includes the option to hold funds within PayPal and earn yield on balances. That feature may appeal to sellers who prefer keeping earnings inside the system instead of moving them to external accounts.
Future Will Depend on Regulatory Stability
The crypto payments tool offers faster settlement and lower costs than many existing methods. Even so, its growth will likely depend on how regulators shape stablecoin policies in the months ahead. PayPal’s wider crypto plans are tied to approval in key markets and broader trust in PYUSD as a payment asset.
The company is continuing to build out the system and extend wallet integrations. If adoption continues, more platforms and merchants may treat digital currency not just as a speculative asset, but as part of day-to-day business.
Notes: This post was edited/created using GenAI tools.
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