PayPal has announced a new feature that allows U.S. merchants to accept cryptocurrency. This move highlights the company's efforts to integrate cryptocurrency into everyday financial operations.
PayPal's New Feature
PayPal now allows U.S. merchants to accept payments in over 100 cryptocurrencies, including Bitcoin, Ethereum, Solana, and major stablecoins like USDT and USDC. The option for automatic conversion of crypto payments into either PYUSD or fiat helps avoid volatility and enables faster transactions. The fee stands at 0.99%, significantly lower than typical credit card processing costs.
PayPal's Stablecoin Strategy
The launch of this new feature strengthens PayPal’s strategy for implementing its stablecoin PYUSD, which has seen an 80% increase in market capitalization since the start of 2025. By converting crypto payments into PYUSD or fiat, the company further positions PYUSD as a key bridge between digital assets and traditional finance. This follows the passing of the GENIUS Act, which clarifies the legality of stablecoins in the U.S.
Competition in Crypto Payments
The competition in the cryptocurrency payment market is intensifying. Stripe, for instance, has launched its own stablecoin checkout tool using USDC and expanded its use internationally. Coinbase has also been actively developing payment solutions for cryptocurrencies since the launch of Coinbase Commerce. This indicates that financial technology is rapidly developing infrastructure for smooth, digital format trading.
The launch of PayPal’s new feature underscores the growing interest in cryptocurrency in retail and the need for improved infrastructure for processing crypto payments. The competition among payment systems promises further development in this area.
