- PayPal cuts global payment fees by 90% with crypto checkout and a 0.99% transaction rate.
- Merchants can now accept 100+ cryptocurrencies from 650M users with instant fiat conversion.
- PayPal offers 4% yield on PYUSD balances held by merchants after crypto payment settlement.
PayPal Holdings Inc. has launched “Pay with Crypto,” a payment solution that allows U.S. merchants to accept over 100 cryptocurrencies at checkout. According to PayPal, businesses lose billions each year to cross-border banking fees. The new tool targets this problem by offering merchants lower fees, near-instant settlement, and access to a growing global customer base.
Pay with Crypto allows buyers to pay using popular cryptocurrencies like Bitcoin, Ethereum, Solana, Tether (USDT), USD Coin (USDC), and XRP. The platform integrates with top wallets like Coinbase, MetaMask, OKX, Binance, Kraken, Phantom, and Exodus.
In addition, Payment settlements are converted into either U.S. dollars or PayPal’s stablecoin, PYUSD, which reduces the risks of price volatility for merchants. The solution is expected to reduce the cost of transactions by as much as 90%, charging only 0.99% per transaction. Comparatively, international payments using credit cards are usually subjected to a fee starting at 1.75%.
Lower Fees, Broader Crypto Acceptance Drive Global Reach
The payments giant cited the effect on small businesses, which often pay international transfer fees above 10% and experience delays in settlements. With PayPal’s Pay with Crypto, merchants receive immediate access to their funds and can even earn 4% rewards on PYUSD balances.
The company says the service covers nearly 90% of the global crypto market by value, linking merchants to a potential customer base of more than 650 million crypto users worldwide.
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Alex Chriss, President and CEO of PayPal, stated, “Businesses of all sizes face pressure when growing globally, from increased payment costs to complex integrations. Today, we’re removing these barriers and helping every business of every size achieve their goals.” He added that these changes offer U.S. businesses a way to reach global buyers and boost profit margins by paying lower transaction fees.
Frank Keller, PayPal’s general manager of large enterprise and merchant platforms, echoed the opportunity, saying, “We wanted to give small businesses access to this customer base that is growing.”
Seamless Crypto Integration, Compliance, and Market Trends
Pay with Crypto allows instant conversion into stablecoins or fiat, protecting merchants from the volatility of digital assets. The decision follows a broader plan to incorporate digital assets more profoundly into PayPal’s payment system. The company’s PYUSD stablecoin now boasts a market capitalization above $900 million.
The launch comes as other competitors, such as Stripe, roll out comparable crypto payments functionality. However, digital asset regulation is still complicated. The company pointed out that its offering is in line with the existing U.S. regulations and that U.S. dollar reserves fully back PYUSD. However, New York residents will not be served until further regulations are approved.
PayPal provides a platform for combined digital and traditional payments aiming to simplify cross-border commerce and minimize obstacles for merchants of all sizes.
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