In the latest convergence of digital assets and mainstream financial services, PayPal is launching a platform that enables merchants to accept payments in over 100 cryptocurrencies.
The service, Pay with Crypto, allows consumers to connect their existing crypto wallets from major platforms like Coinbase Wallet, MetaMask, Kraken, and OKX—unlocking access to a market of 650 million crypto users. At launch, the platform will be available to all U.S. users except those in New York.
One of the key drivers behind PayPal’s launch is the need to address inefficiencies in cross-border payments, which are often plagued with payment delays and high fees. PayPal noted that the platform will charge merchants a 0.99% transaction fee on crypto payments—a rate it claims is 90% lower than the average credit card processing fee.
Inclusive, Borderless Commerce
The crypto launch follows last week’s unveiling of another cross-border-focused solution from PayPal: PayPal World. With this platform, PayPal and Venmo wallets can connect to leading global wallets, including India’s Unified Payment Interface (UPI), China’s WeChat Pay, and potentially Latin America’s Mercado Pago.
This means PayPal and Venmo users can send payments to users of these other systems—even if the recipient doesn’t have a PayPal account—and vice versa. While PayPal World and Pay with Crypto are currently two disparate systems, Alex Chriss, President and CEO of PayPal, noted how both launches are indicative of the “the future of inclusive, borderless commerce.”
Yields for Merchants
Digital assets have long been considered one of the driving forces behind the emerging payments paradigm. A key component of this shift is PayPal’s stablecoin, PYUSD, as all transactions on the platform are automatically converted into PYUSD or fiat currency at checkout.
Though PYUSD was launched roughly two years ago, it has yet to gain substantial ground in a market where Tether holds a commanding lead. However, PYUSD’s market cap has increased roughly 80% since the beginning of the year.
This momentum is expected to continue due to PYUSD’s central role in PayPal’s crypto platform. However, it also coincides with a wave of new stablecoins entering the market, including one from payments competitor Stripe.
The immediate conversion to PYUSD also benefits merchants by allowing them to accept crypto payments without exposure to volatility—and potentially earn a yield.
In a statement, Chriss also noted that “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% when held on PayPal.”
