PayPal Opens $3 Trillion Market, Lets U.S. Merchants Accept Over 100 Cryptos

- U.S. merchants on PayPal now accepting payments in over 100 cryptocurrencies. - Instant conversion of crypto payments to PYUSD stablecoin, then to U.S. dollars. On July 28, 2025, PayPal announced in a press release its new service, “Pay with Crypto.” The service allows U.S. merchants to accept payments in over 100 cryptocurrencies, an initiative that strengthens PayPal’s footprint in the digital payments space and helps reduce the volatility and complexity of crypto transactions. The service lets customers pay with cryptocurrencies like Bitcoin and Ethereum by linking external wallets, such as Coinbase, MetaMask, and Binance, directly at checkout. Subsequently, PayPal automatically converts these payments into its stablecoin, PayPal USD (PYUSD), before settling the funds in U.S. dollars for the merchant. This streamlined process minimizes merchants’ exposure to crypto price swings and ensures they receive payments in a familiar currency. PayPal will charge merchants an initial transaction fee of 0.99%, which increases to 1.5% after the first year. This offering remains competitive, given that U.S. credit card processing fees averaged 1.57% in 2024. In addition, merchants may see savings of up to 90% on international transactions, thanks to blockchain-based efficiencies. This expansion aligns with PayPal’s strategy to capitalize on the growing cryptocurrency market, which now exceeds $3 trillion globally with over 650 million wallet holders. Additionally, PayPal’s platform handles critical compliance measures like Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, while also offering fraud prevention and chargeback resolution to provide merchants an added layer of protection. PayPal first entered the cryptocurrency space in 2020 by introducing crypto trading for U.S. customers. The “Pay with Crypto” feature signals a renewed commitment to digital assets, and the company also plans for future enterprise-level integrations and international expansion.