PayPal Launches “Pay With Crypto” for U.S. Merchants
PayPal is getting ready to launch a new feature called Pay With Crypto, and it’s coming to U.S. merchants in the next few weeks. Businesses will be able to accept over 100 cryptocurrencies, including Bitcoin, Ethereum, USDT, and Solana. Once a customer pays, the crypto is automatically converted into U.S. dollars or PayPal’s stablecoin PYUSD. Merchants get settled instantly, without needing to touch the crypto themselves.
Why Merchants Are Paying Attention
This isn’t just a tech upgrade. For merchants, especially those selling across borders, the savings could be substantial. PayPal is offering a discounted transaction fee of 0.99 percent through mid-2026, which is far lower than the usual credit card processing rates.
Tired: Paying high transaction fees for international payments.
Wired: Reducing costs up to 90% by offering pay with crypto for payments.
Reduce international transaction fees by up to 90%
— PayPal (@PayPal) July 28, 2025
For small businesses operating on slim margins, this makes a significant difference. And they don’t need to do anything extra. PayPal handles the conversion and settlement in the background.
How It Works Behind the Scenes
The feature plugs directly into wallets like Coinbase, MetaMask, and Kraken. When a customer selects Pay With Crypto, their wallet connects to the checkout, the crypto is transferred, and PayPal handles the conversion. The merchant gets paid in either dollars or PYUSD. Everything runs through PayPal’s system, so merchants don’t need to set up wallets or worry about crypto custody.
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Customer Experience Stays the Same
From the customer’s side, it’s a familiar checkout flow. Select your cryptocurrency, choose your token, and approve the payment in your wallet. PayPal takes care of the rest. There’s no delay, no currency conversion step, and no unexpected pop-ups. The receipt is in dollars, and the merchant sees the funds just like they would with any other PayPal transaction.
Strategic Move into Global Crypto Payments
This isn’t just about simplifying payments. PayPal is clearly setting up for a long-term role in global crypto commerce. By bridging crypto wallets and fiat settlements, it’s creating a smooth path for cross-border payments without relying entirely on the traditional banking system. That could eventually give merchants more flexibility, and it hints at where PayPal might be going next.
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Previous Crypto Moves Build Momentum
PayPal has been in the crypto space for a while now. Users can already buy, sell, and hold digital assets in the app. It launched its stablecoin, PYUSD, in 2023. This new merchant-facing tool builds on that foundation, bringing both sides of the transaction—consumer and business—under the same roof.
What to Watch Going Forward
With a rollout like this, questions will follow. Regulators will want to know how these transactions are monitored, whether they meet existing financial rules, and what risks they pose. Merchants will want answers on how fast settlements happen, how refunds work, and what protections are in place if something goes wrong mid-payment.
Why It Matters Now
Credit card fees are climbing, and international commerce isn’t getting any simpler. PayPal’s crypto tool gives businesses a new way to accept payment that could save money and move faster. For crypto-savvy consumers, it also means one less step when checking out online. If it works smoothly, this feature could change how everyday crypto spending fits into online shopping.
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Key Takeaways
- PayPal is rolling out Pay With Crypto to U.S. merchants, letting them accept over 100 cryptocurrencies without handling the crypto directly.
- Payments are converted instantly into USD or PYUSD, with a discounted 0.99% fee—lower than typical credit card processing rates.
- The feature connects to wallets like MetaMask, Coinbase, and Kraken, and merchants don’t need to set up crypto wallets or worry about custody.
- The customer experience is seamless, with no extra steps or delays, and merchants receive payment like a standard PayPal transaction.
- This move positions PayPal for a bigger role in global crypto payments by blending wallet-based crypto use with fiat settlement.
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