PayPal has unveiled a new service, Pay with Crypto, designed to significantly cut the high costs and complexities that merchants face with international transactions. This innovative solution integrates cryptocurrency payments, digital wallet compatibility, and fiat settlement, offering businesses a more efficient and affordable way to handle global payments.
The company states that Pay with Crypto supports over 100 cryptocurrencies and various crypto wallets, including popular ones like Coinbase, MetaMask, Binance, and Phantom. This allows for immediate conversion of crypto to stablecoins or fiat currency.
With a competitive transaction rate of just 0.99%, the service aims to slash international payment processing fees by up to 90% compared to traditional credit card networks.
U.S. merchants will be the first to gain access to this new feature in the coming weeks. This launch connects sellers to a vast global cryptocurrency user base of over 650 mn and provides access to the rapidly growing $3 trillion digital asset market.
Supported cryptocurrencies include BTC, ETH, USDT, XRP, BNB, SOL, and USDC, among others.
Beyond reduced fees, PayPal highlights several other advantages for merchants.Businesses can opt to store their funds in PayPal’s own PYUSD stablecoin and earn an attractive yield of up to 4%.
Payments made with this feature will be automatically converted to PayPal’s stablecoin PYUSD or traditional fiat currency at the point of sale.
The system also promises near-instant access to proceeds, eliminating the multi-day settlement delays often associated with traditional payment methods, and facilitating quicker payouts to vendors and freelancers.
The CEO of Paypal, Alex Chriss, commented,
“Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations. Today, we’re removing these barriers and helping every business of every size achieve their goals.”
PayPal emphasized that Pay with Crypto is a key component of its long-term vision to foster more inclusive, efficient, and borderless payments.
“Imagine a shopper in Guatemala buying a special gift from a merchant in Oklahoma City. Using PayPal’s open platform, the business can accept crypto for payments, increase their profit margins, pay lower transaction fees, get near instant access to proceeds, and grow funds stored as PYUSD at 4%5 when held on PayPal.”
This rollout aligns with PayPal’s broader strategy to integrate digital assets into mainstream commerce.
The company recently collaborated with Fiserv to promote the global adoption of stablecoins and launched PayPal World, a platform that consolidates five of the world’s largest digital wallets for seamless international transactions.
