PayPal has announced a new feature enabling U.S. merchants to accept various cryptocurrencies. This initiative aims to improve international payments and reduce their cost.
Overview of the New Feature
The feature dubbed "Pay with Crypto" will be available in the coming weeks. PayPal customers will be able to make purchases using cryptocurrencies, which will be automatically converted to the PYUSD stablecoin and then to U.S. dollars. Users will be able to utilize wallets such as Coinbase, MetaMask, Binance, and others.
Benefits and Drawbacks
PayPal has highlighted key advantages of the new feature: instant settlements and low fees capped at 0.99%, which will increase to 1.5% after a promotional period of one year. This feature will assist U.S. businesses in accepting payments from customers worldwide with minimal friction.
History of PayPal's Crypto Initiatives
PayPal entered the crypto space in 2020, aiding the onset of a significant bull run, and launched its own stablecoin in 2023. Last year, the company also allowed merchants to buy, sell, and hold digital assets in their business wallets.
PayPal's new cryptocurrency acceptance feature could significantly alter the payments landscape, making transactions more accessible for businesses and customers alike. However, despite the many advantages, there are limitations, such as the feature not being available in New York.
