PayPal has announced the launch of a new feature that enables businesses in the U.S. to accept cryptocurrency as payment. This development follows the enactment of the GENIUS Act, which fosters growth in the crypto industry.
New PayPal Feature for Businesses
The new 'Pay With Crypto' feature will allow online stores and other merchants to accept over 100 different cryptocurrencies. Crypto payments will be instantly converted into U.S. dollars or PayPal's stablecoin, simplifying the process for both merchants and consumers. Businesses will be able to activate this option through PayPal's business tools.
Terms and Fees
Initially, PayPal will charge a transaction fee of 0.99%, which will increase to 1.5% after the first year. The company's press release notes that these fees are still lower than typical fees for international credit card transactions.
Regulation and Risks of PYUSD
Although the new feature supports popular memecoins, the PYUSD token has not yet received approval from the New York State Department of Financial Services. This limits its availability for residents of the state until regulatory approval is granted. Importantly, PYUSD and other digital assets are not insured by the FDIC or SIPC, increasing financial risks for users in the event of service failure.
The launch of the 'Pay With Crypto' feature by PayPal opens new avenues for business but also raises questions about the safety and regulation of cryptocurrency assets.
