A Major Step Toward Crypto Integration in E-Commerce
PayPal has officially launched its new ‘Pay with Crypto’ feature, allowing merchants to accept payments in over 100 cryptocurrencies, including major digital assets like Bitcoin and Ethereum. The feature, currently limited to U.S.-based merchants, represents a major leap in the platform’s efforts to integrate cryptocurrency into mainstream financial services.
Seamless Payments from Major Crypto Wallets
The new feature allows customers to pay directly using popular crypto wallets such as MetaMask, Coinbase, and others. Once a crypto payment is made, PayPal automatically converts the digital currency into fiat—either U.S. dollars or PayPal USD (PYUSD), the company’s own U.S. dollar-backed stablecoin. Funds are then deposited into the merchant’s PayPal account, eliminating the need for complex conversions or multiple platforms.
Competitive Fees for Merchants
PayPal is offering a competitive transaction fee of 0.99% for all crypto payments. This promotional rate is locked in until July 31, 2026, making it an appealing alternative to traditional credit card processing fees, which typically range from 1.5% to 3.5%. The lower fees could provide significant savings for businesses—especially those engaged in international transactions, where cross-border fees often cut into margins.
Potential to Revolutionize International Transactions
One of the most promising aspects of the ‘Pay with Crypto’ feature is its potential to accelerate cross-border payments. According to PayPal, using crypto could reduce international transaction fees by up to 90%, dramatically improving cost-efficiency and settlement speed for global merchants.
Incentives for Merchants Holding PYUSD
In a further bid to drive adoption, PayPal is offering an annual reward of 3.7% to merchants who choose to hold their converted funds in PYUSD. This incentive not only promotes the use of PayPal’s stablecoin but also encourages users to treat it as a viable store of value—particularly appealing in the current high-inflation environment.
Limited to U.S. Market for Now
As of now, the ‘Pay with Crypto’ service is available only to merchants based in the United States. However, PayPal has hinted at plans to expand the feature to other markets in the near future. While there is no official timeline, Southeast Asia and the Philippines have been mentioned as potential regions for rollout, and updates will be provided as expansion details are confirmed.
A Strategic Move in the Fintech Race
PayPal’s introduction of crypto payment capabilities comes amid a growing race among fintech platforms to embrace Web3 and digital currencies. With millions of active users and a trusted global brand, PayPal is uniquely positioned to make crypto payments more accessible to everyday consumers and businesses alike.
What This Means for the Future of Payments
The ‘Pay with Crypto’ feature underscores a broader shift in how traditional financial institutions are adapting to the cryptocurrency economy. By simplifying the user experience—removing technical barriers and offering competitive rates—PayPal is not just experimenting with blockchain technology; it is actively redefining how payments work in the digital age.
Bottom Line:
PayPal’s ‘Pay with Crypto’ feature is more than a novelty—it’s a strategic innovation that could reshape digital commerce. With low fees, wallet integrations, and a fiat conversion system backed by a stablecoin, the company is setting the stage for wider crypto adoption in everyday transactions.
