PayPal has launched a major upgrade to its crypto ecosystem, empowering U.S. businesses to accept payments in over 100 cryptocurrencies. Supported wallets include Coinbase, MetaMask, Binance, and Kraken. After checkout, each crypto payment is instantly converted into fiat currency or PayPal’s own stablecoin, PYUSD, with a transaction fee of just 0.99 percent—far lower than traditional credit card rates.
Massive Cost Cuts and Market Access for Merchants
Merchants can benefit from up to 90 percent lower international transaction costs. PayPal estimates this move opens access to a $3 trillion digital asset market and over 650 million active crypto users globally.
Expansion of PayPal’s Crypto Suite
This announcement builds on PayPal’s 2024 rollout allowing business accounts to buy, hold, and sell crypto. These capabilities now include external wallet transfers for users outside New York State. PYUSD, launched in 2023 and now integrated with the Solana blockchain, is expected to gain global traction by 2025 through PayPal’s platforms including Hyperwallet.
Consumer Protection and Confidence Boosters
To increase merchant and consumer confidence, PayPal offers reimbursement of up to $50,000 for unauthorized crypto transfers. This protection echoes its existing consumer safeguards and is a unique offering in the crypto commerce space.
Why Merchants Are Embracing Crypto Payments Via PayPal
Retailers, travel agencies, and e-commerce vendors are increasingly drawn to crypto because of reduced processing fees, instant access to funds, and optional yields of up to 4 percent annually on PYUSD balances. Small and mid-sized businesses are already tapping into new revenue streams.
Rising Stablecoin Momentum in the Financial Sector
PayPal’s move mirrors broader trends across the financial industry. Giants like Mastercard, Visa, and Revolut are actively developing their own stablecoin infrastructure.
Analysts are calling it a stablecoin gold rush, driven by supportive regulation such as the U.S. GENIUS Act and rapid global fintech investments.
PayPal Competition and Hurdles Ahead
Despite its growth, PayPal confronts strong competition. Its PYUSD stablecoin still trails volume leaders such as Tether and Circle. Merchant adoption is slow, with many afraid to completely abandon familiar systems.
Meanwhile, competitors such as Stripe and Coinbase are quickly developing their cryptocurrency payment systems, compelling PayPal to remain innovative in order to keep its advantage.