Imagine this — a handmade jewelry seller in Oklahoma gets an online order from a buyer in Guatemala. Traditionally, they’d face high international credit card fees, currency conversion issues, and long settlement times. But now, thanks to PayPal’s newest innovation, the seller can receive instant payment in cryptocurrency, converted seamlessly into U.S. dollars or PayPal’s own stablecoin, PYUSD — all with a tiny 0.99% fee.
Quick Highlights: Pay with Crypto in 10 Seconds
- Over 100 Cryptocurrencies Accepted including BTC, ETH, USDT, USDC, and SOL
- Supports Cross-Border Payments with automatic conversion to fiat or PYUSD
- ransaction Fees as Low as 0.99%, up to 90% cheaper than credit cards
- Compatible with Wallets like MetaMask, Coinbase, Binance, Phantom, Kraken
- Protects Merchants from Volatility via instant crypto-to-fiat or stablecoin conversion
- Boosts PYUSD Adoption, now nearing $900M+ market cap
- Aimed at U.S. Merchants (excl. NY) but designed for global commerce
- Follows passage of GENIUS Act, clarifying stablecoin regulations in the U.S.
In July 2025, PayPal launched “Pay with Crypto,” a bold feature that enables U.S.-based merchants to accept over 100 cryptocurrencies, including Bitcoin, Ethereum, Solana, and major stablecoins like USDT and USDC. Designed to remove the complexity and volatility of crypto payments, the new tool automatically converts digital assets into fiat or PYUSD. This means businesses can reap the benefits of crypto — speed, global reach, low fees — without taking on the risks. With transaction fees starting at just 0.99%, PayPal claims it’s up to 90% cheaper than typical international credit card processing, which often hovers around 1.75% or more.
Wallet Compatibility and Global Access
What makes this move especially powerful is its integration with some of the most popular crypto wallets in the world. “Pay with Crypto” works with Coinbase Wallet, MetaMask, Phantom, Kraken, Binance, and more, allowing access to a global audience of over 650 million crypto users. This strategic wallet integration also eliminates the friction users usually face when trying to spend crypto in the real world. From major exchanges to Web3 wallets, PayPal is bridging the gap between crypto holders and businesses.
PYUSD: More Than Just a Stablecoin
At the heart of this strategy is PYUSD, PayPal’s U.S. dollar–backed stablecoin issued by Paxos. Since January 2025, the market cap of PYUSD has surged by nearly 80%, rising from $497 million to $894 million. By converting crypto payments into PYUSD or fiat, PayPal is turning its stablecoin into a key part of the global payment infrastructure. Merchants even have the option to earn rewards of up to 4% APY by holding PYUSD within PayPal, creating a new incentive to stay in the ecosystem.
Growing Competition in the Crypto Payments Space
This product release didn’t come out of nowhere. It follows the GENIUS Act, recently passed in the U.S., which brings long-awaited regulatory clarity to stablecoins. With this legal green light, companies like PayPal, Stripe, and Coinbase are moving fast to build a new generation of payment rails powered by crypto. Stripe, for example, launched its own stablecoin-based checkout using USDC last year, quickly expanding to 70+ countries. In June 2025, Stripe also integrated with Coinbase to support fiat-to-crypto flows directly via its UI.
Meanwhile, Coinbase Commerce — active since 2018 — has evolved into a full crypto-native merchant platform. In 2024, it introduced the x402 protocol, designed for API-driven and AI-powered crypto payments. That tool enables automated, crypto-to-crypto transactions using USDC on the Base network — laying the groundwork for decentralized, programmable commerce.
Benefits for Small and Mid-Sized Businesses
But PayPal’s massive user base and regulatory experience give it an edge. With over two decades in the digital payments business, PayPal is positioning itself not just as a fintech player, but as a borderless commerce platform powered by crypto. The company’s latest announcement also references a partnership with Fiserv, signaling a broader expansion of stablecoin usage in B2B systems — from vendor payments to payrolls.
For small and medium-sized businesses, especially those looking to expand internationally, the benefits are clear. Lower fees, faster settlements, global reach, and reduced reliance on traditional banks. Merchants can now accept payments from customers around the world in real time — without worrying about exchange rates or multi-day clearing periods. And because crypto transactions are irreversible and ledger-based, fraud risk and chargeback fees are drastically reduced.
Caution and Considerations
That said, there are still limitations. The feature is currently only available to U.S.-based merchants (excluding New York, due to regulatory hurdles). PayPal also notes risks associated with blockchain reliability, wallet custody, and regulatory changes. PYUSD itself is not FDIC-insured, and redemption for U.S. dollars may be limited to approved partners like Paxos. Users are advised to read the full Terms and Conditions before adopting the service.
Still, the message is clear: crypto payments are no longer just a novelty. They’re becoming infrastructure. As more payment giants and wallet platforms get involved, stablecoins like PYUSD and USDC are increasingly used not just for speculation, but for real-world utility. Whether it’s cross-border commerce, digital freelancing, or e-commerce, crypto is moving into the mainstream.
Final Thoughts
PayPal’s “Pay with Crypto” feature is a powerful signal of this shift. By streamlining global payments, reducing costs, and supporting digital currencies natively, PayPal is helping build the future of inclusive, efficient, and borderless commerce — one transaction at a time.
