PayPal Holdings has introduced a new feature, PayPal Links, aimed at simplifying peer-to-peer transactions and supporting digital assets. The service is set to expand into international markets, including the UK.
How PayPal Links Works
PayPal Links allows users to send and request payments via personalized, one-time links. Unlike the previous PayPal Me feature, senders can now pre-set payment amounts and add notes or emojis. Funds become available immediately upon acceptance, and unclaimed links expire after 10 days.
Tax Benefits of the New Transfers
PayPal clarified that P2P transfers between known users will be exempt from 1099-K reporting. This means users will not receive tax forms for personal transfers like gifts or reimbursements, providing a significant advantage for cryptocurrency users.
PayPal's Crypto Integration Strategy
Since enabling cryptocurrency trading in 2020, PayPal has steadily expanded its digital asset offerings. Its partnership with Paxos in 2023 to launch PYUSD marked one of the first mainstream stablecoin integrations. With PayPal Links, the company is embedding crypto into its core P2P flows, potentially giving it a competitive edge in the rapidly growing Web3 payments ecosystem.
The introduction of PayPal Links underscores the company's commitment to integrating cryptocurrency into everyday transactions, which could boost the adoption of PYUSD and strengthen PayPal's position in the digital payments market.
