In a bold leap toward the future of digital commerce, PayPal has rolled out its “Pay with Crypto” feature, allowing over 650 million crypto users to make purchases with more than 100 different cryptocurrencies, beginning in 2025. The announcement marks a transformational shift: now, both users and merchants can transact in crypto seamlessly—without worrying about volatility or complex conversion steps. (Cointelegraph, PayPal Newsroom)
What Is “Pay with Crypto,” and How Does It Work?
1. Seamless Crypto Checkout
At checkout, users simply select “Pay with Crypto,” link their external wallet—such as Coinbase Wallet, MetaMask, Binance, Kraken, Phantom, or Exodus—and choose their preferred cryptocurrency (Bitcoin, Ethereum, Solana, USDC, USDT, PYUSD, and more). PayPal handles the rest, converting the crypto instantly into fiat (like USD) or into its own PYUSD stablecoin, delivering a smooth, native experience without exposing either party to price swings. (Cointelegraph, PayPal Newsroom)
2. Wide Crypto Support, Wallet-Agnostic Access
PayPal equips merchants with the ability to accept a wide swath of crypto tokens—over 100 in total—without needing to custody them. Shoppers retain full control via their preferred wallet. (Cointelegraph, PayPal Newsroom)
3. Instant Settlement and Stable Payouts
Merchants receive funds near-instantly—either in fiat or in the PYUSD stablecoin—which they can hold or convert as needed. No more waiting days for bank transfers, and the PYUSD option offers a stable, predictable value. (Cointelegraph, PayPal Newsroom)
4. Low Introductory Fees – With Growth in Rewards
- 0.99% transaction fee through mid-2026—a significant discount vs standard card fees (1.5–3.5%) (Cointelegraph, PayPal Newsroom)
- Afterward, expected to rise to ~1.5%—still competitive (Cointelegraph, TechRadar)
- Holding proceeds in PYUSD earns ~4% APY, turning idle balances into a yield-generating asset (Cointelegraph, PayPal Newsroom)
Why It Matters: From Convenience to Global Expansion
A. For Users: Frictionless Crypto Spending
Crypto holders can now use their digital assets directly at checkout—without jumping through hoops like swapping coins, depositing to exchanges, or enduring volatility. It’s as simple as paying with a debit card—but with the power and flexibility of blockchain. (Cointelegraph, PayPal Newsroom)
B. For Merchants: Faster, Cheaper, More Profitable
Cross-border merchants often face steep credit-card fees and delayed settlements. “Pay with Crypto” shaves up to 90% off those costs, while unlocking faster cash flow and optional 4% PYUSD yield—especially vital for small businesses and global sellers. (PayPal Newsroom, TechRadar)
C. Strategic Leap Toward a Crypto-Enabled Commerce Ecosystem
PayPal is bridging the fiat and crypto worlds, making digital assets truly usable. This is just the first act: the company also announced PayPal World, a global wallet alliance integrating UPI, Tenpay, Mercado Pago, Venmo, and more. The goal? Smooth, cross-border crypto payments for billions—no extra integrations needed. (Cointelegraph, PayPal Newsroom)
Behind the Scenes: PYUSD and Industry Partnerships
PYUSD: PayPal’s Dollar-Pegged Backbone
Launched in 2023, PYUSD is PayPal’s stablecoin, redeemable 1:1 for USD and backed by U.S. dollar deposits, U.S. Treasuries, and equivalents—the reserves are publicly attested each month. Holding PYUSD in PayPal earns rewards and enables easy transfers via PayPal or Venmo. (PayPal, Reuters)
Coinbase Collaboration Accelerates Adoption
In April 2025, Coinbase waived fees on PYUSD and enabled direct USD redemptions—raising visibility and usability for PayPal’s stablecoin in the crypto ecosystem. (Reuters)
Heading Into the Future—With a Few Caveats
Regulatory Watchpoints
PYUSD is still pending approval from the New York State Department of Financial Services, meaning usage may vary by state. (Cointelegraph, PayPal Newsroom)
Digital assets—even stablecoins—aren’t FDIC or SIPC insured, leaving them vulnerable to custodian failures or technical issues. (Cointelegraph, PayPal Newsroom)
The 0.99% fee is promotional—and may rise later. Stable long-term pricing is not yet guaranteed. (Cointelegraph, TechRadar)
Operational Risks
Blockchain systems can be prone to network delays or outages, and wallets remain a user-managed vulnerability. Users must practice secure key and wallet handling. (PayPal Newsroom)
Final Thoughts: A Crypto-Native Future Beckons
With “Pay with Crypto,” PayPal is dismantling some of the biggest barriers to everyday crypto adoption: volatility, conversion friction, wallet complexity, and slow settlement. By enabling real-time crypto checkout and offering merchants stable payouts and fee advantages, PayPal is positioning itself as a powerful bridge between Web3 and mainstream commerce.
For users, this move turns speculative tokens into practical spending tools. For merchants, it’s a chance to tap into emerging consumer bases and unlock new efficiencies. And for the broader financial system—it’s a tangible step toward seamless, borderless digital payments. As the initial rollout expands and features like PayPal World roll out, PayPal may well redefine how crypto meets commerce.
Sources:
- “PayPal just enabled crypto for 650 M users…” – Cointelegraph (Cointelegraph)
- PayPal newsroom: “PayPal Drives Crypto Payments into the Mainstream…” (PayPal Newsroom)
- TechRadar analysis: PayPal supports 100+ cryptos, wallet integrations & fees (TechRadar)
- CBS News / MoneyWatch: crypto checkout, fee comparisons, wallet links (CBS News, TechRadar)
- PayPal’s PYUSD overview (stablecoin, rewards, transparency) (PayPal)
- Reuters: Coinbase waives PYUSD fees, expands redemption options (Reuters)
