PayPal has launched a new ‘Pay with Crypto’ feature, enabling merchants to accept payments over 100 cryptocurrencies. This includes Bitcoin, Ethereum, etc. It allows customers to pay directly through major crypto wallets like MetaMask, Coinbase, and more.
Once a payment is made, PayPal will automatically convert it into fiat currency or PayPal USD (PYUSD). For context, PYUSD is their own US dollar-backed stablecoin. From there, funds are then deposited directly into the merchant’s PayPal account.
PayPal will be charging a 0.99% transaction fee for all crypto payments. This rate is locked in until July 31, 2026. For comparison, typical credit card fees range from 1.5% to 3.5%.
This could speed up international transactions and reduce fees by up to 90%. The company is also encouraging its adoption by offering merchants a 3.7% annual reward for holding PYUSD.
At the time of writing, Paypal’s Pay with Crypto feature is currently limited to US-based merchants. However, it’s expected to expand to other markets in the future. We’ll update readers should it ever arrive in SEA or the Philippines.
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